Shares down 1.56% on foreign, institutional selling

South Korean stocks slumped 1.56 percent on Wednesday as foreigners and institutions scaled back their holdings amid nagging concerns over the global economy, analysts said. The local currency fell against the U.S. dollar.

The benchmark Korea Composite Stock Price Index fell 30.82 points to 1,948.22, declining for the third straight session.

Trading volume was moderate at 442.6 million shares worth 4.66 trillion won ($4.18 billion), with decliners outnumbering gainers 595 to 223.

“With foreigners and institutions selling, there seems to be an absence of buyers that could give the market a boost,” said Lim Dong-lak, an analyst at Hanyang Securities Co.

Foreigners opted to sell for the second straight session and institutional investors also shifted to selling. Retail investors continued to buy for the third straight session.

“While we may hear some positive news about Spain later this month, the market is likely to be rangebound until then amid lingering economic worries and lackluster third-quarter earnings,” Lim said.

Shares lost ground across the board. Market bellwether Samsung Electronics slumped 3.43 percent to 1,325,000 won and top steelmaker POSCO sank 1.4 percent to 352,500 won.

Dim hopes for third-quarter earnings also weighed on share prices, with chip giant SK hynix falling 2.34 percent to 23,000 won. (Yonhap News)