Seoul stocks slip on institutional selling
Published : Nov 20, 2017 - 16:23
Updated : Nov 20, 2017 - 16:23
South Korean stocks ended lower Monday as institutional investors dumped major tech stocks to lock in recent gains, analysts said. The Korean won lost against the US dollar.
The benchmark Korea Composite Stock Price Index shed 6.32 points, or 0.25 percent, to close at 2,527.67. Trade volume was moderate at 400 million shares worth 5.8 trillion won ($5.3 billion), with gainers outnumbering losers 443 to 365.
Institutional investors offloaded a net 339.6 billion won worth of local stocks, while individuals and foreigners were net buyers by snatching up 89.8 billion won and 214.4 billion won, respectively.
The local stock market opened tad higher despite Wall Street losses last week. On Friday (local time) US stocks dropped after the prior session's rally. The Dow Jones industrial average fell 0.43 percent, with the tech-heavy Nasdaq composite index shedding 0.15 percent.
The secondary tech-heavy KOSDAQ index, meanwhile, soared 1.22 percent to close at 785.32, the highest since November 2007.
"The rise of KOSDAQ is too fast in terms of current market status," said Kang Jae-hyeon, an analyst at Hi Investment & Securities, forecasting that both the KOSPI and KOSDAQ will balance their momentum.
Most large caps on the KOSPI had a mixed day of trade, with tech and insurance shares finishing in negative terrain.
Market kingpin Samsung Electronics fell 1.11 percent to 2,760,000 won to snap a two-day winning streak, and SK hynix, one of the top chipmakers in the world, was down 1.08 percent to 82,100 won.
Insurers lost ground, with Samsung Life Insurance dropping 2.59 percent to 131,500 won.
In contrast, chemical and medical shares closed higher with LG Chem, the nation's leading chemical firm, inching up 0.24 percent to 409,500 won. Hanmi Pharmaceuticals climbed 2.14 percent to 574,000 won. No. 1 steelmaker POSCO also increased 1.28 percent to 317,000 won.
Auto shares also had a mixed day, with leading automaker Hyundai Motor backtracking 0.32 percent to 156,500 won, and its sister company, Kia Motors, shedding 0.3 percent to 33,750 won. Hyundai Mobis, meanwhile, remained unchanged at 255,500 won.
The local currency closed at 1,106.00 won against the greenback, down 3.1 won from the previous session's close.
Bond prices, which move inversely to yields, gained. The yield on three-year Treasurys lost 1.8 basis points to 2.162 percent, and the return on the benchmark five-year government bonds shed 2.5 basis points to 2.358 percent. (Yonhap)
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