Kospi Heads for Longest Losing Streak Since 2004

South Korea's stocks declined for the seventh day, with the benchmark heading to its longest losing streak in three years on concern that global economic growth will slow from credit market losses in the U.S.

Hyundai Heavy Industries Ltd. paced a decline among makers of capital goods on speculation slower global growth will weaken demand for machinery, power generators and ships.

SK Telecom Co. Ltd. led companies that rely on domestic spending higher on expectations slowing global growth will push investors to switch into stocks that rely on local demand. LG Electronics Inc. paced an advance among the nation's exporters of electronics as the won weakened for the seventh day.

``Equipment makers and manufacturers of machines are not attractive when global economic growth is weak because companies will not be expanding,'' said Kim Woo Sik, who manages $328 million at SH Asset Management Co. in Seoul. ``Telecoms are up because these are good domestic plays. A weak won is good for electronics exporters.''

The Kospi fell 47.64, or 2.7 percent, to 1,751.23 as of 1:05 p.m. in Seoul, after sliding 8.8 percent in the previous six days. The measure is heading to its longest losing streak since a seven- day slide in October 2004.

The Kosdaq decreased 3.7 percent to 695.31. Kospi 200 futures expiring in December declined 2.1 percent to 224.05, while the underlying index fell 2.1 percent to 223.30.

Hyundai Heavy, the world's largest shipbuilder, fell 16,500 won, or 4 percent, to 392,500. Doosan Heavy Industries & Construction Co., South Korea's biggest maker of electricity generators, lost 12,500 won, or 9.7 percent, to 116,500.
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