(LEAD) Seoul shares fall over 3 pct on concerns of economic slowdown

South Korean shares dipped to a month low Wednesday as concerns of an economic slowdown weighed down investor sentiment. The local currency fell against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) lost 83.83 points, or 3.15 percent, to close at 2,580,80. Trade volume was heavy at 448.8 million shares worth 11.2 trillion won (US$8.35 billion), with losers outnumbering gainers 859 to 51. Foreign investors offloaded 986 billion won worth of local shares, becoming net sellers for a second straight session, while institutions extended their selling streak to a third session, dumping 730 billion won. Retail investors scooped up a net 1.65 trillion won. An electronic signboard at a Hana Bank dealing room in Seoul shows the benchmark KOSPI lost 83.83 points, or 3.15 percent, to close at 2,580.80 on Sept. 4, 2024. (Yonhap) The index had opened in negative territory, taking a cue from overnight losses on Wall Street prompted by a worse-than-expected U.S. manufacturing purchasing manag ers index (PMI) that suggested a potential slowdown down the road. The PMI for August came to 47.2, up 0.4 percentage point from a month earlier, but fell short of the market expectation of 47.5. "Stock prices fell as investors took a cautious approach ahead of key U.S. economic indicators, while hopes for a big rate cut by the U.S. Fed somewhat shrank, putting additional downward pressure on the South Korean stock market," said Hwang Joon-ho, an analyst at Sangsangin Securities. The U.S. Federal Reserve is set to hold its next rate-setting meeting Sept. 17-18 (U.S. time). In Seoul, most large caps closed sharply lower. Market kingpin and tech giant Samsung Electronics tumbled 3.45 percent to 70,000 won, while SK hynix, the world's No. 2 chipmaker, plunged 8.02 percent to 154,800 won. Other tech shares also took a heavy beating, with top battery maker LG Energy Solution falling 2.80 percent to 399,500 won, while its local rival Samsung SDS gained 1.16 percent to 157,400 won. Top portal operator Naver t umbled 4.72 percent to 157,500 won, while leading chemicals firm LG Chem retreated 2.70 percent to 324,000 won. Leading automaker Hyundai Motor fell 2.11 percent to 232,500 won, while its smaller affiliate Kia Motors dipped 1.96 percent to 100,200 won. The local currency was trading at 1,342.2 won against the greenback, down 0.8 won from the previous session. Bond prices, which move inversely to yields, rose. The yield on three-year Treasurys fell 5.0 basis points to 2.931 percent, while the return on the benchmark five-year government bonds shed 5.5 basis points to 2.996 percent. Source: Yonhap News Agency