Seoul shares finished down 5.7 percent on Friday, their biggest daily percentage loss in five weeks, with foreign investors taking flight as concerns about global economic stagnation deepened. The Korea Composite Stock Price Index (KOSPI) fell 5.73 percent or 103.11 points to 1,697.44 points, the lowest close in nearly 15 months.
"A lot of what's happening today brings back the memory of the 2008 financial crisis, which is why market players are panicking and prompting capital flight," said Kim Seong-bong, a market analyst at Samsung Securities. Foreign investors were sellers of a net 676.1 billion won ($81.3 million) worth of stocks, offloading stocks for s second straight session.
Pension funds were buyers of a net 127.1 billion won worth of stocks, picking up shares for a 13th straight session, their longest buying streak in six weeks. World leaders and finance chiefs on Thursday pushed Europe to quell its debt crisis, and big emerging economies said they might provide more money to help stop the chaos from spreading. Falls were led by crude oil refiners and shipbuilders as the grim global economic backdrop darkened the outlook for sectors that are more sensitive to economic cycles.
Shares in SK Innovation, the country's top refiner, tumbled 8.5 percent and GS Holdings, the holding company of the country's second-biggest refiner, GS Caltex, dropped 8.2 percent. Hyundai Heavy Industries, the world's top shipyard, ended 8.1 percent lower and Daewoo Shipbuilding & Marine Engineering lost 10.5 percent. Shares in KB Financial Group fell 7.2 percent and Shinhan Financial Group declined 9.1 percent.
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