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Roundup: S.Korean shares fall on uncertainties over oil price

Xinhua, December 8, 2015 Adjust font size:

South Korean shares ended in negative territory Tuesday on growing uncertainties over the crude oil prices that showed a steep volatility recently.

The benchmark Korea Composite Stock Price Index (KOSPI) declined 14.63 points, or 0.75 percent, to 1,949.04 at the close. Trading volume stood at 401 million shares worth 3.57 trillion won (3.03 billion U.S. dollars).

Global crude oil prices tumbled more than 8 percent in the past two days, boosting concerns over volatility in the major energy source.

It added to worries, especially among foreign investors, about uncertainties after the expected interest rate hike in the United States.

The January delivery for West Texas Intermediate plunged 5.8 percent in New York to settle at 37.65 U.S. dollars a barrel, marking the lowest since February 2009.

Lower crude oil prices triggered worries about possible deflation in advanced economies amid a global economic slump.

Foreigners dumped 190 billion won worth of local shares, keeping a selling trend for five sessions in a row. Retail and institutional investors bought shares worth 58 billion won and 25 billion won respectively.

Lower crude oil prices are usually a positive factor to the South Korean economy as it lowers production costs for manufacturers, but the prolongation of cheaper oil reduces orders of ship and plant from the Middle East, one of major markets for South Korean shipbuilders and construction companies.

Most large-cap shares lost ground. Top automaker Hyundai Motor lost 0.3 percent, and major builder Samsung C&T declined 0.4 percent. Leading cosmetics maker AmorePacific dipped 0.5 percent, and the biggest auto parts maker Hyundai Mobis slumped 0.8 percent.

Memory chip giant SK Hynix slipped 1.6 percent, and the No.1 life insurer Samsung Life Insurance fell 0.5 percent. The second-largest carmaker Kia Motors retreated 1.5 percent, but market bellwether Samsung Electronics closed unchanged.

The South Korean currency finished at 1,178.6 won against the greenback, down 10.4 won from Monday's close.

Bond prices ended higher. Yields on the liquid three-year treasury notes fell 2.4 basis points to 1.763 percent, and the return on the benchmark 10-year government bonds dipped 6.9 basis points to 2.230 percent. Enditem