S.Korean shares fall on global economic concerns

South Korean shares ended in negative territory on Tuesday due to lingering concerns over global economic slowdown.

The benchmark Korea Composite Stock Price Index (KOSPI) sank 14. 78 points, or 0.77 percent, to close at 1,915.28. Trading volume stood at 397.52 million shares worth 4.27 trillion won (4.05 billion U.S. dollars).

Foreign and institutional investors sold stocks worth 62.7 billion won and 76.6 billion won respectively on worries that the global recovery would slow down especially in Europe.

Expectations also remained that the U.S. Federal Reserve may raise interest rates in the second half of next year, denting investors' sentiment.

Adding to the concerns, China's gross domestic product expanded 7.3 percent in the third quarter from a year earlier, marking the lowest growth since the first quarter of 2009.

It fueled worries about South Korea's exports, which account for around half of the economy. China is the largest trading partner of South Korea.

Retail investors bought a net 138.1 billion won worth of stocks, limiting the KOSPI's further decline.

Large-cap shares lost ground. Leading chemical firm LG Chem tumbled 14.2 percent on sluggish earnings for the third quarter. The world's largest shipbuilder Hyundai Heavy Industries sank 4.9 percent, and market bellwether Samsung Electronics lost 2.1 percent.

Memory chip giant SK Hynix and top mobile operator SK Telecom ended in positive terrain, but auto shares, including Hyundai Motor and Kia Motors, closed bearish.

The South Korean currency finished at 1,054.7 won against the greenback, up 4.9 won from Monday's close.

Bond prices ended higher. Yields on the liquid three-year treasury notes declined 1.5 basis points to 2.244 percent, and the return on the benchmark 10-year government bonds lost 2.8 basis points to 2.757 percent.