Roundup: S. Korean shares fall on foreign sell-off

South Korean shares declined for three straight sessions Wednesday as foreigners sold off stocks ahead of major economic events this month that boosted uncertainties.

The benchmark Korea Composite Stock Price Index (KOSPI) inched down 3.48 points, or 0.18 percent, to 1,913.66 at the close.

Trading volume stood at 281 million shares worth 4.34 trillion won (4 billion U.S. dollars).

Foreign investors reduced stock holdings by 184.6 billion won, keeping a selling spree for the third straight day. Retail and institutional investors bought stocks worth 71.3 billion won and 9. 6 billion won each, limiting the KOSPI decline.

Europe's constitutional court is scheduled to rule on Wednesday night about whether the European Central Bank's purchase of government bonds is unconstitutional.

If the purchase is ruled constitutional, the ECB is expected to decide to buy government bonds when it holds the regular monetary policy meeting on Jan. 22.

Greece is to hold general elections on Jan. 25, the result of which may lead to the country's exit from the euro zone.

Foreigners dumped Hyundai Glovis, the logistics affiliate of Hyundai Motor Group, after group chairman Chung Mong-koo and his son Eui-sun failed Tuesday at block sales, or massive over-the- counter sales, in their stakes in Glovis.

Shares of Hyundai Glovis plunged 9.2 percent after falling at the daily permissible limit of 15 percent on Tuesday.

Hyundai Mobis, an auto parts unit of the country's second- biggest conglomerate, declined 4 percent after rising 11.6 percent on Tuesday.

Investors viewed the block sale trial as an intention to transfer management control of the group from Chairman Chung to his son Eui-sun.

The Hyundai Mobis acts as a de-factor holding company of the group like the Cheil Industries for Samsung Group, the country's number one chaebol.

The state-run electricity provider Korea Electric Power Corp. slid 2.1 percent, but market bellwether Samsung Electronics rose 0. 5 percent.

The biggest life insurer Samsung Life Insurance advanced 2.6 percent, and memory chip giant SK Hynix ended in positive territory.

The South Korean currency finished at 1,082.2 won against the greenback, up 1.3 won from Tuesday's close.

Bond prices ended higher. Yields on the liquid three-year treasury notes declined 5.0 basis points to 1.974 percent, and the return on the benchmark 10-year government bonds slid 6.4 basis points to 2.369 percent. Endi