South Korean stocks dropped 1.23 percent Thursday as investor sentiment was muted by widespread uncertainties over the stalled U.S. budget deal and European fiscal woes, analysts said. The local currency lost ground against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) fell 23.32 points to close at 1,870.72. Trading volume was moderate at 446.2 million shares worth 4.14 trillion won ($3.8 billion) with decliners far outnumbering gainers 608 to 230.
"Investors are worried about uncertainties across the world.
Hopes started to fade for an agreement among U.S. politicians to avoid a fiscal cliff, eurozone debt woes still remained unresolved, and China is slowing down," said analyst Lee Seung-woo from Daewoo Securities Co.
"A fresh conflict in the Middle East also fueled the selling pressure."
Lee said the market will continue to head south as there are few factors to stop the move and turn the trend.
Foreigners offloaded a net 262.3 billion won worth of local shares, extending their selling streak for six straight sessions.
Market heavyweights led the decline, dragged lower by tech behemoth Samsung Electronics which lost 1.77 percent to 1,331,000 won.
Banks finished bearish, with Woori Finance Holdings, the country's biggest financial group by asset, decreasing 2.43 percent to 10,050 won and Hana Financial Group slipping 0.98 percent to 30,350 won.
Leading steelmaker POSCO fell 2.15 percent to 318,000 won and top shipper Hyundai Merchant Marine retreated 3.2 percent to 24,200 won.
The local currency ended at 1,086.7 won against the greenback, down 1.8 won from Wednesday's close, due to growing uncertainties over the global economy, dealers said.
Bond prices, which move inversely to yields, closed mixed. The yield on three-year Treasuries fell 0.01 percentage point to 2.78 percent but the return on the benchmark five-year government bonds stayed unchanged at 2.85 percent. (Yonhap News)
