(LEAD) Seoul stocks again nose-dive as virus fear overwhelms U.S. rate cut

(ATTN: ADDS details in para 3, bond yields at bottom; CHANGES photo; UPDATES with minor edits throughout)

SEOUL, March 16 (Yonhap) -- South Korean stocks extended their losses to a fourth consecutive session Monday as investors braced for a bigger-than-expected and drawn-out economic fallout from the global spread of the new coronavirus despite the U.S. Federal Reserve's unexpected rate cut. The Korean won closed at a four-year low against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) shed 56.58 points, or 3.19 percent, to close at 1,714.86, the lowest figure since it posted 1,710.32 on Oct. 6, 2011.

Trading volume was moderate at 671 million shares worth 8.47 trillion won (US$6.9 billion), with losers far outnumbering gainers 721 to 154.

On Sunday (local time), the U.S. Federal Reserve decided to slash its key rate by 1 percentage point to a range of zero to 0.25 percent and roll out a quantitative easing program worth US$700 billion. Investors, however, were apparently more concerned about further economic jitters from the COVID-19 outbreak.

"Although the Fed has rolled out an exceptional measure to stabilize the market, investors are more concerned about the situation that has prodded the Fed to make such a decision," said An Young-jin, a researcher at SK Securities Co.

Investors were also spooked as China, South Korea's top trading partner, unveiled disappointing industrial output data for the January-February period, 13.5 percent down from last year.

South Korea saw another downward trend in daily new infections of the novel coronavirus Monday, but multiple small-scale cluster infections continued to emerge across the nation. The country added 74 new COVID-19 cases, which were detected Sunday, bringing up the nation's total infections to 8,236.

As the number of patients is still skyrocketing in Europe, South Korea expanded its special quarantine procedures to arrivals from all European countries as well.

Foreigners were net sellers for an eighth consecutive session, dumping 680 billion won. Retail investors were net buyers over the period, purchasing a net 926 billion won Monday. Institutions offloaded a net 340 billion won.

Shares lost ground across the board.

Top market cap Samsung Electronics moved down 2.1 percent to 48,900 won, while No. 2 chipmaker SK hynix shed 2.3 percent to reach 80,600 won. Home appliances maker LG Electronics dropped 4 percent to 50,400 won.

Leading online portal operator Naver plunged 6.63 percent to 155,000 won, and its smaller rival Kakao shed 7.23 percent to close at 147,500 won.

No. 1 carmaker Hyundai Motor slipped 4.93 percent to 82,900 won, and its auto parts arm Hyundai Mobis lost 5.83 percent, closing at 161,500 won. Kia Motors shed 6.07 percent to hit 27,100 won.

Top chemical firm LG Chem sank 8.22 percent to 312,500 won, and cosmetics maker AmorePacific fell 2.32 percent to 147,500 won.

The local currency closed at 1,226.00 won against the greenback, down 6.70 won from the previous session's close, the lowest level since the 1,227.5 won posted on March 2, 2016.

Bond prices, which move inversely to yields, ended higher. The yield on three-year Treasurys fell 5 basis points to 1.099 percent, and the return on the benchmark five-year government bond declined 4.6 basis points to 1.268 percent.

colin@yna.co.kr
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