Published : 2013-03-20 15:47
Updated : 2013-03-20 15:47
South Korean stocks dropped 0.97 percent on Wednesday as investors stepped to the sidelines on an aborted bailout plan for Cyprus, analysts said. The local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) fell
19.15 points to 1,959.41. Trading volume was moderate at 322.4 million shares worth 3.7 trillion won (US$3.3 billion), with decliners outnumbering gainers 562 to 251.
"The Cyprus rejection raised concerns on the eurozone region and foreigners continued to sell," said Lim Dong-lak, an analyst at Hanyang Securities Co. Foreigners extended their net selling to a fifth straight session.
On Tuesday, lawmakers in Cyprus rejected a bank levy plan aimed to save the Mediterranean country from financial collapse, rekindling concerns on the eurozone debt situation.
Lim, however, expected investor sentiment to eventually recover amid easing concerns on currency volatility and upcoming earnings releases.
Most exporters ended on negative territory with market bellwether Samsung Electronics losing 1.02 percent to 1,460,000 won.
Samsung Heavy Industries slumped 1.53 percent to 35,300 won after announcing part of its deal on delivering eight container ships to a Middle Eastern client was canceled.
Bank shares also weighed on the KOSPI, with No. 4 financial group Shinhan Financial falling 2.91 percent to 38,350 won.
In contrast, top life insurer Samsung Life Insurance gained 0.99 percent to 102,000 won.
The local currency ended at 1,116.1 won against the greenback, down 4.5 won from Tuesday's close as the Cyprus event rekindled eurozone worries, dealers said. (Yonhap News)