Shares slip 0.59% on uncertainties

Korean stocks closed 0.59 percent lower Tuesday as growing uncertainties about the looming U.S. fiscal cliff and the persistent eurozone debt woes weighed heavily on the local market, analysts said. The local currency declined against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) lost 11.17 points to close at 1,889.7. Trading volume was moderate at 486.9 million shares worth 3.86 trillion won (US$3.64 billion) with decliners outnumbering advancers 609 to 214.

"What investors don't like is uncertainty in the market. They are worried about the current situation in the United States and Europe," said Lee Da-seul, an analyst at Korea Investment & Securities Co. "The U.S. fiscal cliff and the Greek debt problem still remain unresolved."

He said investors remained concerned about slow progress in resolving problems in the U.S. and Europe, although Washington promised to deal with the fiscal cliff before the end of the year and eurozone finance ministers met early this week to discuss Greek bailout plans.

"The U.S. politicians will avoid the worst-case scenario, for sure. But nobody knows when. It will take time," said Lee.

Foreign investors extended their selling streak to the fourth consecutive session, offloading a net 7.3 billion won worth of local shares.

Large-cap exporters led the decline, with shipbuilders, carmakers and refiners finishing bearish.

World's largest shipyard Hyundai Heavy Industries lost 2.2 percent to 200,000 won and Daewoo Shipbuilding & Marine Engineering tumbled 4.59 percent to 21,850 won.

Top automaker Hyundai Motor slid 2.08 percent to 212,000 won and its smaller affiliate Kia Motors dropped 2.12 percent to 55,300 won.

Refiners also ended lower, with industry leader SK Innovation falling 0.94 percent to 157,500 won and No. 3 player S-Oil retreating 1.45 percent to 95,300 won.

In contrast, techs were bullish, with world's leading handset maker Samsung Electronics gaining 0.3 percent to 1,349,000 won and LG Electronics adding 2.62 percent to 78,400 won.

The local currency ended at 1,089.9 won against the greenback, down 1.3 won from Monday's close, as investors' appetite for risky assets waned due to growing economic uncertainties, dealers said. (Yonhap)