(Updates to mid-morning)
By Park Jung-youn
SEOUL, July 2 (Reuters) - Seoul shares extended their slide
on Wednesday after four consecutive losing sessions that dragged
the index down 3 percent, with oil's gain overnight weighing on
energy price-sensitive issues such as Korean Air Line.
The Korea Composite Stock Price Index was down 1.58
percent to 1,640.08 points as of 0105 GMT, tumbling on a foreign
investor selloff that has continued for 18 consecutive trading
sessions.
"Honestly, I expected a steady start today, but heavy foreign
selling is offsetting some buying from local retail and
institutional investors," said Hong In-young, a market analyst at
Hyundai Motor IB Securities.
"Foreign investors are not just selling Korean shares but
other Asian stocks as they grow increasingly risk-adverse.
Inflation pressures and high energy prices are becoming real
fears," Hong said, adding that eyes were on the European Central
Bank's interest rate decision this week.
Carmaker Hyundai Motor (005380.KS) declined despite posting
year-on-year growth in its June U.S. sales and its U.S. peer GM's
GM.N stronger-than-expected sales for the month, as the product
mix sold during the month was seen as weak.
"The more profitable lineups that Hyundai has invested most
heavily in didn't sell well," said Park Dae-shik, an analyst at
CJ Investment & Securities.
"High energy prices are weighing on the company's sales. It's
safe to say at this point that the future trend of energy prices
will determine carmakers' earnings," Park added.
Hyundai Motor lost 1.08 percent to 73,100 won.
Ssangyong Motor (003620.KS) also dropped 4.01 percent to
3,710 won after releasing dismal June sales numbers.
Technology bellwethers such as Hynix Semiconductor
(000660.KS) and LG Electronics (066570.KS) also fell across the
board on worries worsening economic conditions will dent their
profits.
Hynix lost 2.85 percent to 23,850 won and LG Elec slid 2.5
percent to 117,000 won.
Meanwhile persistent strength in oil sent issues such as
Korean Air Line (003490.KS) and Asiana Airlines (020560.KS)
sharply lower after U.S. crude CLc1 settled up at nearly $141 a
barrel on Tuesday.
Korean Air fell 4.58 percent to 45,800 won and Asiana lost
3.14 percent to 5,250 won.
