Seoul shares tumble, local currency at over 13-yr low amid recession woes

SEOUL, Sept. 7 (Yonhap) -- Seoul shares tumbled on Wednesday as foreigners and institutions dumped holdings amid worries over the U.S. Federal Reserve's continued aggressive rate hikes and their impact on the global economy. The Korean won also slid to the lowest point in more than 13 years.

The Korea Composite Stock Price Index (KOSPI) fell 1.39 percent, or 33.56 points, to 2,376.46. Trading volume was moderate at 370.02 million shares worth 7.29 trillion won (US$5.3 billion), with decliners outpacing gainers 768 to 119.

Foreigners and institutions sold a combined 716.75 billion won worth of stocks, exceeding individuals' stock purchases valued at 688.41 billion won.

"The strong dollar was the main downward factor in today's session for Asian markets among others. Rapid depreciation of regional currencies could further reduce the appetite for risky Asian assets," Park Hee-cheol, an analyst at Mirae Asset, said.

Most large-cap stocks declined across the board.

Market bellwether Samsung Electronics Co. fell 1.9 percent to 56,000 won, and No. 2 chipmaker SK hynix Inc. declined 1.5 percent to 90,400 won. Flag carrier Korean Air Lines Co. dropped 1.2 percent to 25,300 won, and No. 1 steelmaker POSCO Holdings shed 2.6 percent to 246,000 won.

Auto and chemical stocks were among gainers, with top carmaker Hyundai Motor Co. rising 0.5 percent to 202,000 won and leading chemical firm LG Chem Ltd. gaining 0.7 percent to 623,000 won.

The won closed at 1,384.20 won against the U.S. dollar on Wednesday, down 12.50 won from the previous session's close. Wednesday's closing was the lowest level since March 30, 2009, when it fell to as low as 1,391.50.

kyongae.choi@yna.co.kr
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