Seoul shares tumble 2.8 % on eurozone woes, weak U.S. data

Published : Jun 4, 2012 - 15:47 Updated : Jun 4, 2012 - 17:11

South Korean stocks plunged 2.8 percent Monday on persistent eurozone woes and disappointing U.S. economic data, analysts said. The local currency fell against the U.S. dollar.

The benchmark KOSPI nose-dived 51.38 points, to 1,783.13, marking the fourth straight session of decline. Trading volume was light at 369 million shares worth 4.85 trillion won ($4.10 billion), with losers clearly outpacing gainers 777 to 102.

(Yonhap News)

"The market was rocked by bad news from the European Union and concerns that the U.S. economy may be losing steam," Lee Seung-woo, an analyst at Daewoo Securities said. "Investors were disappointed by lack of any policy initiative to cope with the current crisis situation."

Kwak Byung-ryel, a researcher at Eugene Investment & Securities, said last week's disappointing U.S. employment figures and growing concerns over the outcome of political elections in Greece has fueled market volatility.

Most big caps in electronics, autos, chemicals and heavy industries led the decline with some utilities posting modest gains.

Market bellwether Samsung Electronics dropped 3 percent to 1,196,000 won, with top automaker Hyundai Motor giving up 1.68 percent to 234,000 won.

No. 2 carmaker Kia Motors fell 3.40 percent to 76,700 won, with LG Chem, a leading manufacturer of rechargeable batteries, plunging 5.85 percent to 265,500 won.

Leading refiner SK Innovation nose-dived 7.72 percent to 125,500 won, with global steelmaker POSCO also surrendering 1.26 percent to 353,000 won.

Shares of Hyundai Heavy Industries, the world's largest shipmaker, lost 3.85 percent to 250,000 won, with state-run power monopoly Korea Electric Power Corp. gaining 2.43 percent to 23,150 won.

The local currency finished at 1,181.95 won to the U.S. greenback, down 4.3 won from Friday's close.

(Yonhap News)