Shares tumble 2.64 percent on foreign selling

Korean stocks plunged 2.64 percent on Monday as foreign investors unleashed holdings on falling risk appetite, analysts said. The local currency dipped against the U.S. dollar.

The benchmark Korea Composite Stock Price Index plunged 55.79 points to 2,055.71. Trading volume was moderate at 289.8 million shares worth 6.24 trillion won ($5.7 billion), with losers far outnumbering gainers 691 to 146.

“Friday’s fall in the U.S. stock markets dented investor sentiment,” said Oh Tae-dong, an analyst at Taurus Investment & Securities Co. “Foreigners dumped shares in a handful of Asian markets amid the strengthening of the greenback.”

It may take as long as two months for offshore investors to fully regain their appetite for risky assets, said Oh.

Shares lost ground across the board, with automakers leading the declines on worries the ongoing labor strike at a parts maker may slash their output.

Yoosung Enterprise, which specializes in piston rings, cylinder liners and other key components of car engines, shut down two of its five plants in the country after its unionized workers began a walkout last week following failed wage negotiations.

Top automaker Hyundai Motor slumped 5.39 percent to 228,000 won, and its smaller affiliate Kia Motors lost 4.69 percent to 69,100 won. Shares of Yoosung Enterprise, however, skyrocketed 14.86 percent to 3,015 won.

Other blue chips also ended bearish. Leading oil refiner SK Innovation ended at 205,000 won, down 5.96 percent from the previous session. No. 1 shipbuilder Hyundai Heavy Industries lost 6.96 percent to 441,000 won. 

(Yonhap News)