By Cho Hyung-kwon
Staff Reporter

The Seoul stock market plummeted to its lowest level this year and the Korean won weakened to a four-month low as negative external factors weighed heavily on the local financial markets.

The Korea Composite Stock Price Index (KOSPI) tumbled 48.06 points, or 5.73 percent, to close at 790.68, the lowest since Dec. 26 last year. The 48-point decline is the ninth largest ever on the Seoul stock market.

The technology-heavy Kosdaq also finished at its lowest for the year, slumping 28.84 points, or 6.61 percent, to 407.41.

The won-dollar exchange rate shot above 1,180 won level in the morning and peaked at 1,187 won, the highest since Jan. 20, before closing at 1,183.1 won. The won lost more than 1 percent against the U.S. dollar.

The benchmark stock index plunged more than 65 points in the afternoon before recovering some of the lost ground from retail buying.

``Possible interest rate hikes in the U.S. in June, concerns over the spread of terrorist attacks and rising oil prices dampened the already weak investor sentiment,’’ Daishin Securities said.

Last weekend’s favorable job growth data in the U.S. gave way to the increased likelihood that the Federal Reserve Board will raise interest rates in the imminent future.

``With investor sentiment already hurt by concerns over China’s economic slowdown, the latest series in negative external conditions dragged the sentiment further downwards,” the securities firm added.

Other Asian markets also suffered heavy losses with Japan’s Nikkei 225 Average slumping 4.84 percent, Taiwan dropping 3.56 percent and Hong Kong falling 3.6 percent.

Foreign investors dumped equities for the ninth consecutive session and institutional investors also sold stocks worth 94 billion won.

The 20 largest stocks all finished in negative territory with Samsung Electronics losing 5.74 percent to 509,000 won and SK Telecom putting off 3.38 percent to 199,500 won. Samsung finished at its lowest level in more than three months.

Declining issues overwhelmed advancers by a nine to one margin as some 403 million shares changed hands.

On the Kosdaq market, falling issues overwhelmed gainers by an eight to one ratio with 174 issues tumbling to the daily limit.

kevincho@koreatimes.co.kr