Shares decline on eurozone, China concerns

South Korean stocks fell 0.27 percent Wednesday on lingering fiscal uncertainties in eurozone economies and worries over China’s sluggish growth, analysts said. The local currency fell against the U.S. dollar.

The benchmark Korea Composite Stock Price Index dropped 5.05 points to 1,844.86, snapping a three-day gaining streak.

Trading volume was light at 397 million shares worth 5.07 trillion won ($4.31 billion), with losers outpacing gainers 517 to 313.

“Worries surrounding Greece’s default have lessened, but overall eurozone woes are still affecting the market,” said Cho Byung-hyun, an analyst at Tongyang Securities.

Kim Dae-jun, a researcher at Taurus Investment and Securities added that slower than expected growth is affecting investor sentiment and the main bourse. He said recent speculation of Beijing pushing forward a new stimulus program is a reflection of sluggish growth in the world’s second largest economy.

Others said that moves by investors to lock in part of their gains in the last few days caused the market to lose ground.

Big caps in electronics lost ground, along with chemical and petroleum refining although autos, steel and heavy industries posted gains.

Market bellwether Samsung Electronics fell 0.97 percent to 1,226,000 won, while LG Electronics, a leading electronic appliance manufacturer, gave up 0.88 percent to 672,800 won.

LG Chem, a leading manufacturer of rechargeable batteries, lost 0.33 percent to 298,000 won with top refiner SK Innovation declining 0.69 percent to 144,000 won.

Top automaker Hyundai Motor, however, jumped 2.32 percent to 243,000 won and No. 2 carmaker Kia Motors gained 0.77 percent to 78,500 won.

Global steelmaker POSCO gained 1.12 percent to 362,500 won, with Hyundai Heavy Industries, the world’s largest shipmaker, adding 0.55 percent to 272,000 won.

The local currency finished at 1,176.3 won to the U.S. greenback, down 1.5 won from Wednesday’s close, dealers said. (Yonhap News)