(Updates to afternoon)
By Jungyoun Park
SEOUL, March 2 (Reuters) - Seoul shares tumbled to their
lowest in three months on Monday as fresh financial sector
worries and deepening economic concerns sent banks and industrial
issues lower, while a weaker won weighed on importers.
The Korea Composite Stock Price Index (KOSPI) was
down 4.51 percent at 1,015.07 points at 0406 GMT, its lowest
since early December, 2008.
"Large selling volumes from programme accounts and foreign
investors on the back of worries about the problems at eastern
European banks and uncertain outlooks of Citigroup and AIG
impacting local financial markets are weighing," said Oh
Hyeon-suk, a market analyst at Samsung Securities.
Foreign investors were sellers of a net 329 billion won,
continuing their non-stop selling spree since February 10.
The U.S. government will boost its equity stake in Citigroup
to as much as 36 percent and will also pour another $30 billion
or so into American International Group Inc (AIG).
[ID:nN27330392] [ID:nN01344575]
"Rapid weakness in the won currency against the dollar is
hurting sentiment," Oh added.
The won KRW= dropped as much as 3.8 percent against the
dollar on Monday.
Falls were led by financials, with KB Financial Group
(105560.KS) losing 4.59 percent and Shinhan Financial Group
(055550.KS) retreating 5.79 percent.
Crude refiners, which as importers of crude from overseas
have heavy foreign debts, also led losses, with SK Energy
(096770.KS) sinking 5.52 percent and GS Holdings (078930.KS), the
holding company of GS Caltex, sliding 6.08 percent.
(Editing by Jonathan Hopfner)
