Seoul shares decline as Greek fears renew

SEOUL: Seoul shares fell on Wednesday, hit by concern that a Greek referendum could snuff out a bailout plan designed to contain the euro zone debt crisis, and pressured by declines in banks and refiners including KB Financial Group and S-Oil

"Greek risk is again hurting investor sentiment, and combined with overriding macroeconomic uncertainty, we are seeing some profit-taking moves," said Bae Sung-young, a market analyst at Hyundai Securities.

The Greek government faced possible collapse on Tuesday as ruling party lawmakers demanded Prime Minister George Papandreou resign for throwing the nation's euro membership into jeopardy with a shock call for a referendum.

Foreign investors were sellers of a net 181.2 billion Korean won ($162.7 million) worth of stocks, poised to snap four consecutive sessions of buying.

The Korea Composite Stock Price Index (KOSPI) was down 1.43 percent at 1,882.33 points as of 0209 GMT.

Declines were led by banks and crude oil refiners.

Shares in KB Financial Group lost 3.6 percent and Shinhan Financial Group shed 3.2 percent.

Woori Finance Holdings shares fell 4.2 percent after the company reported late on Tuesday that its third quarter operating profit fell nearly 11 percent from a year before period.

Crude oil refiners came under pressure, weighed further by the weakening won , which tends to increase the cost of importing crude oil.

Shares in S-Oil , the country's No.3 refiner, declined 3 percent, and SK Innovation , the country's No.1, fell 3.6 percent.

Shipbuilders also lost ground. The sector is more sensitive to economic cycles and was also hurt by weak earnings released after the market's close on Tuesday.

Shares in Samsung Heavy Industries fell 5.3 percent after the company reported a 53 percent year-on-year fall in third quarter net profit.

Hyundai Heavy Industries declined 5.2 percent and STX Offshore & Shipbuilding fell 4.4 percent.

But automakers outperformed following their strong set of October monthly sales.

Hyundai Motor edged up 0.4 percent after reporting 13.6 percent year-on-year growth in sales after the closing bell.

Kia Motors advanced 1.1 percent.

Defensive issues outperformed as investor preference for safer and less cyclical sectors grew.

KT&G , the tobacco and ginseng manufacturer, rose 0.3 percent and Lotte Chilsung , a beverage maker, advanced 2.3 percent.