Fears over a US double-dip recession slammed South Korean stocks for a fourth straight day on Friday, driving the main index down nearly 4 percent. Analysts said investor anxiety had reached a level that could require policy measures in response.
The Korea Composite Stock Price Index (KOSPI) finished down 3.7 percent at 1,943.75 points, paring earlier losses of nearly 5 percent as state pension and public funds stepped up buying. They purchased a combined net 485.4 billion won ($457.2 million) worth of stocks, the biggest daily amount since October 2008, in the early stages of the global financial crisis.
The 14-day relative strength index (RSI) for the KOSPI dropped below 30 into oversold territory. Shipbuilders led falls. The world's No 1 Hyundai Heavy Industries shed 5.8 percent while Daewoo Shipbuilding and Marine Engineering plunged 10.4 percent. Other key exporters extended losses.
Samsung Electronics, the world's No 1 memory chip maker and the largest stock on the KOSPI, slid 3.9 percent, and the country's top automaker Hyundai Motor was down 2.4 percent. Decliners outnumbered gainers by 810 to 66. KOSPI 200 September futures fell 10.05 points to 251.50 and the KOSPI 200 spot index slid 9.64 points to 251.90. The junior Kosdaq market finished down 5.08 percent at 495.55.
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