SEOUL: South Korean stocks dropped the most in four months on Wednesday as investor sentiment was dented by such external woes as the Greek debt crisis and slowing U.S. trade, analysts said. The local currency lost ground against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) tumbled 27.65 points, or 1.3 percent, to close at 2,104.58. It was the biggest daily loss since the 1.74 percent drop on Jan. 6. At one point, the KOSPI hovered below the psychologically important 2,100-point level.
Trading volume was high at 423.7 million shares worth 5.61 trillion won (US$5.19 billion), with losers outpacing gainers 632 to 187.
Analysts said Seoul shares lost ground as the International Monetary Fund said it will not provide assistance to Greece if the eurozone countries fail to cooperate in writing off debts of the European country.The weak U.S. trade data also lent support to the downward trend. The world’s No. 1 economy said its trade deficit came to $51.4 billion in March, marking the highest amount since October 2008.
