South Korean stocks closed down Tuesday on massive institutional selling amid concerns over the future of the eurozone economy and a cautious approach by investors ahead of a full-swing earnings season, analysts said. The South Korean won fell against the U.S. greenback.
Snapping a seven-day winning streak, the benchmark Korea Composite Stock Price Index fell 1.92 points, or 0.09 percent, to 2,144.79. Trading volume was heavy at 553.16 million shares worth 6.82 trillion won ($6.29 billion), with decliners outnumbering gainers 457 to 374.
“Massive institutional selling weighed down on the market, with auto, telecom, banks and other shares that rallied last week paring some of the gains,” said Lee Kyung-min, an analyst from Daishin Securities Co. “Also, investors took a cautious approach as the full-swing corporate earnings season was approaching.”
Investor sentiment was also dampened by the possibility that Greece may exit from the single currency regime.
Institutions dumped a net 467.85 billion won worth of local shares. They sold more than they bought for seven straight sessions.
Auto issues were among the big losers. Hyundai Motor fell 2.29 percent to 170,500 won, while Hyundai Mobis, an auto parts affiliate of Hyundai Motor, lost 1.45 percent to 237,500 won.
Telecom companies ended lower with KT and SK Telecom falling 0.34 percent and 0.18 percent, respectively. Most brokerage companies, including Samsung Securities and Daewoo Securities, also lost ground on profit taking.
Among gainers was SK C&C, an IT service unit of SK Group, which surged 5.83 percent to 245,000 won following the previous day’s announcement that it will merge with SK Holdings Co. as investors saw the plan as a move to eventually benefit both companies.
Cheil Industries advanced 1.88 to 162,500 won following a report that it could turn into a holding company for Samsung Group, while major cosmetics maker LG Household & Health Care surged 4.36 percent to 933,000 won.
The local currency closed at 1,083.4 won against the U.S. dollar, down 4.2 won from Monday’s close.
Bond prices, which move inversely to yields, ended lower. The yield on three-year Treasury bonds rose 1.7 basis points to 1.710 percent, while the return on the benchmark five-year government bonds gained 1.9 basis points to 1.832 percent. (Yonhap)
