ADRs in Focus: South Korea index slides

The Bank of New York Korea ADR Index lost 5.61 points, or 2.2 percent, to 255.84 during the afternoon session. ADR stands for American Depositary Receipt, which is a security designed to allow U.S. investors to trade shares of companies based overseas.

South Korea's central bank said Tuesday that while strong exports helped bolster the economy during the first half of the year, slower-than-expected expansion during the last two quarters of 2008 may erase those gains as demand slumps and oil prices rise.

The central bank now expects the economy to grow 4.6 percent, down from a previous 4.7 percent estimate.

Shares of Gravity Co., an online gaming company, posted the biggest drop on the index, shedding 20 cents, or 14.8 percent, to $1.15.

Shares of semiconductor company Pixelplus Co. dropped 16 cents, or 13.5 percent, to $1.03, while shares of Posco, a steel company, slid $5.76, or 4.4 percent, to $124.02.

Shares of LG Display Co., which makes liquid crystal displays, decreased 53 cents, or 2.9 percent, to $18.15.

Bucking the trend, shares of telecommunications company KT Corp. rose 8 cents to $21.40.

The Bank of New York Emerging Markets ADR Index--which includes shares of companies based in China, Mexico, Brazil and more--lost 6.89 points, or 2 percent, to 342.46.

The Bank of New York Composite ADR Index shed 2.99 points, or 1.8 percent, to 165.20.