Seoul Shares Close Lower on Inflation Woes

South Korean stocks ended lower Tuesday as investor sentiment went sour amid global inflation and continuing strikes.

The benchmark Korea Composite Stock Price Index (KOSPI) lost l10.11 points, or 0.57 percent, to 1,750.71. Volume was moderate at 330.5 million shares worth 4.81 trillion won ($4.7 billion), with losers outpacing gainers 518 to 283.

"The Seoul bourse was somewhat volatile. Investor sentiment was dented by truckers' strikes and lingering concerns about soaring inflation," Yonhap News quoted Lee Sun-yup, an analyst at Goodmorning Shinhan Securities, as saying.

Construction shares lost ground mainly on the news that construction workers had joined the strike. No. 1 builder Daewoo Engineering & Construction fell 3.36 percent to 17,250 won and its smaller rival Hyundai Engineering & Construction shed 5.06 percent to 76,900 won.

Tech blue chips lost momentum with industry leader Samsung Electronics declining 0.43 percent to 688,000 won.

But financial shares traded in positive territory on speculation that the worst phase of the U.S. subprime mortgage crisis has passed. Leading financial services company Woori Finance Holdings advanced 2.23 percent to 18,350 won.

The tech-heavy Kosdaq market lost 8.61 points, or 1.389 percent, to 612.41.

After strengthening to 1,021.40 won at one point, the Korean won closed at 1,023.20 won against the dollar, up 15.10 won from Monday's close, as foreign exchange authorities unloaded part of their dollar holdings worth about $300 million to $500 million to curb the won's steep fall.