Seoul shares end down 1 pct

Seoul shares fell on Tuesday led by banking and technology issues including Hynix.

Seoul shares fell on Tuesday led by banking and technology issues including Hynix,but Hyundai Department gained on the strong IPO pricing of Hyundai Homeshopping,in which it is the majority shareholder.

The Korea Composite Stock Price Index KOSPI finished down 0.99 per cent at 1,742.75 points.

8220;Shares fell under the influence of negative trading in the US market overnight,and continued economic worries are weighing on sentiment and sending key blue chips lower,8221; Lee added.

Foreign investors were sellers of a net 36.8 billion won 30.90 million worth of stocks,and institutions offloaded a net 28.8 billion won.

Memory chip issues underperformed after a 2.5 per cent loss in the US Philadelphia semiconductor index.

8220;Pessimistic views on the economy are weighing on the broader technology sector. Memory chips were hit particularly badly due to recent bearish comments from Intel,8221; said An Seong-ho,an analyst at Eugene Investment amp; Securities.

Intel Corp warned late last week that third-quarter revenue could fall short of its own estimates by more than 1 billion,reinforcing doubts about the strength of a technology sector recovery.

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Shares in Samsung Electronics,the world8217;s No.1 memory chip maker,fell 2.6 per cent and Hynix Semiconductor,the world8217;s No.2,dropped 6.2 per cent.

Shares in LG Display,the world8217;s No.2 flat panel maker,declined 2.9 per cent and LG Electronics,the world8217;s third-biggest handset maker,declined 1.6 per cent.

But Hyundai Department Store outperformed,ending flat,after Hyundai Homeshopping priced its 270 billion won 225.9 million initial public offering at the top of the indicative range.

Airline issues rose on the back of expectations of strong inflows of Chinese tourists,analysts said.

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8220;The rising number of Chinese passengers coming into South Korea8230;will certainly help air carriers8217; profits,8221; said Yun Hee-do,an analyst at Korea Investment amp; Securities.

Shares in Korean Air Line,South Korea8217;s top air carrier,rose 1.5 per cent and Asiana Airlines advanced 3.2 per cent.

Banking stocks retreated following a rally in the previous session.

KB Financial Group,the parent group of South Korea8217;s biggest commercial lender Kookmin Bank,shed 1.8 per cent and Hana Financial Group retreated 3.4 per cent.