Shares fall on Spain bailout disappointment

South Korean stocks fell 0.66 percent Tuesday after investors expressed disappointment over Spain’s bailout plans and concerns mounted over upcoming Greek elections, analysts said. The local currency fell against the U.S. dollar.

The benchmark Korea Composite Stock Price Index lost 12.30 points to 1,854.74. Trading volume was light at 404 million shares worth 5.59 trillion won ($4.77 billion), with losers outpacing gainers 441 to 361.

“The market backtracked as investors expressed concerns that the bank bailout plan for Spain does not address fundamental problems facing the country,” said Lee Sang-jae, a senior economist at Hyundai Securities.

He said such disappointments caused the local bourse and other overseas markets to lose ground a day after expectations bolstered stock prices in the United States, Europe and Asia.

Others such as Song Chang-sung, an analyst at Hanyang Securities, said mounting concerns that Greece may leave the eurozone caused a drop in stock prices.

Recent polls in Greece showed the party supporting anti-austerity measures may win in Sunday’s poll. If such developments take place, Athens may opt out of the 17-member currency union.

Many big-cap shares in electronics, steel, chemicals and heavy industries lost ground with modest gains being reported for autos.

Market bellwether Samsung Electronics dropped 1.03 percent to 1,255,000 won, with top automaker Hyundai Motor moving down 0.62 percent to 238,500 won.

LG Chem, a leading manufacturer of rechargeable batteries, gave up 0.35 percent to 287,000 won, with Hyundai Heavy Industries, the world’s largest shipmaker, falling 1.10 percent to 269,000 won.

Global steelmaker POSCO lost 1.86 percent to 368,500 won with leading refiner SK Innovation surrendering 0.35 percent to 142,500 won.

No. 2 carmaker Kia Motors, however, gained 0.26 percent to 78,100 won,

The local currency finished at 1,170.50 won to the U.S. greenback, down 4.6 won from Monday’s close. (Yonhap News)