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Monday August 6, 2:27 PMSeoul shares extend slump; Samsung Elec faltersSEOUL, Aug 6 (Reuters) - Seoul shares extended a recent slump to fall 1.2 percent on Monday, as financials such as Kookmin Bank were hit by worries about global credit conditions, with exporters further dented by weak U.S. jobs data.Samsung Electronics lost ground following a temporary halt in its chip production line due to Friday's power outage, although shares came off their session lows on expectations losses would be less than initially feared. Foreign investors ended net sellers in the main KOSPI for a 16th consecutive session, unloading a net 493.6 billion won ($534.4 million) as of 0609 GMT on Monday and bringing their net sales total during that period to around $7.15 billion. "People must accept that the market is headed towards a period of correction, and that it's going to take some time before we see a pickup," said Lim Chang-gue, a fund manager at Samsung Investment Trust Management. "A credit crunch is spreading fast, and once started, it won't be easy to reverse," he added. The benchmark Korea Composite Stock Price Index (KOSPI) dropped 1.16 percent to end at 1,855.05 points, after earlier falling as much as 2.5 percent. The KOSPI has fallen 8 percent since hitting a record 2,015.48 on July 26, hit by worries that a U.S. subprime mortgage crisis would limit the availability of credit and leave some funds exposed to soured investments. [ID:nN03645945] A correction is usually identified as a fall of at least 10 percent. These concerns intensified on Friday when Wall Street slid sharply after Bear Stearns said credit markets were in their worst shape in two decades. [ID:nN03300207] Financial firms tracked a slump in regional peers, although analysts noted South Korean investment firms had limited direct exposure to subprime-related holdings. Kookmin Bank , the country's biggest lender, fell 2.25 percent to 74,000 won, while brokerage Daewoo Securities Co. fell 2 percent to 31,800 won. Firms with ties to the United States also dropped following Friday's weaker-than-expected U.S. jobs growth data and slower service sector growth, which raised the prospects of reduced sales to South Korea's second-biggest export market. [ID:nN03287060] Hyundai Motor Co. fell 1.92 percent to 76,500 won. Samsung Electronics fell 1.02 percent to 584,000 won, paring earlier losses of as much as 3.05 percent. The world's biggest memory chip maker said on Monday it would crank up production to meet its monthly targets following the power outage, moving to calm fears over chip supplies. [ID:nSEO37289] Rival chip maker Hynix Semiconductor Inc. rose 0.67 percent to 37,350 won on expectations the production disruption would increase chip prices. |
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