Index tumbles to year low as investors flee Hyundai

PUBLISHED : Friday, 28 April, 2000, 12:00am
UPDATED : Friday, 28 April, 2000, 12:00am

South Korean shares closed sharply lower yesterday, with the market index falling below the 700-point level, its lowest for the year, on continued Hyundai Group sales and after Wall Street's decline on Wednesday.

Foreigners offloaded Hyundai holdings on concerns over a possible fallout from the weakening financial condition of the investment trust unit, dealers said.

The Korea Composite Index closed 21.16 points weaker at 692.07.

Fallers outnumbered risers by 643 to 200, with 37 other shares unchanged.

Analysts said foreigners sold Hyundai company shares amid concerns the group faced a liquidity crisis.

'As foreign selling in Hyundai Electronics accelerated, it looked like foreigners are exiting the country,' Shinhan Securities analyst Park Hyo-jin said.

Close: 692.07 (- 21.16) Turnover: 2.61 trln won Volume: 224.44 mln shares