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Seoul shares fall to a two-week low; Hyundai Motor gains
September 26, 2012 / 3:10 AM / 5 years ago

Seoul shares fall to a two-week low; Hyundai Motor gains

* KOSPI down 0.6 pct on worries about health of global economy

* Hyundai Motor climbs on gains in China market share

SEOUL, Sept 26 (Reuters) - Seoul shares fell to their lowest levels in nearly two weeks on Wednesday, with some market participants saying that the correction could continue for the rest of the week as worries about the health of the global economy preoccupy investors.

Signs of slowing growth have taken centre stage again after equity markets rallied earlier this month on monetary easing measures taken by the U.S Federal Reserve and the Bank of Japan, as well as on the ECB’s bond-buying plan.

Institutional investors joined foreigners in dumping stocks, with sentiment also hurt by protests in Spain that has underscored the country’s financing difficulties.

“Despite ample liquidity in the market, investors remain concerned about whether economic fundamentals are really improving,” Kim Hak-kyun, an analyst at Daewoo Securities.

The Korea Composite Stock Price Index (KOSPI) declined 0.6 percent to 1,979.06 points as of 0225 GMT, its lowest intraday level since Sept. 13. The KOSPI closed down 0.6 percent the previous day.

“The KOSPI is under pressure and is suffering a technical correction, and this is likely to continue this week,” said Park Seok-hyun, an analyst at KTB Investment & Securities.

But Hyundai Motor, South Korea’s second valuable stock after Samsung Electronics, bucked the trend, rebounding 1.8 percent.

Korea Investment & Securities said in a report that Hyundai gained market share in China in August, while its Japanese rivals suffered from falls, hurt by the territorial dispute between Japan and China. (Reporting by Hyunjoo Jin; Editing by Edwina Gibbs)

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