Seoul stocks sink over 2.5% on chip losses

South Korean shares fell by more than 2 percent Monday, ending their four-day winning streak, as investors locked in profits from large-cap tech shares.

The benchmark Korea Composite Stock Price Index lost 191.18 points, or 2.7 percent, to end at 6,889.74.

After opening 0.33 percent lower, the index came under a heavy selling-spree by foreigners and institutions.

The KOSPI extended its winning streak to a fourth session through Wednesday and was closed Thursday and Friday for the Chuseok holiday, South Korea's equivalent of Thanksgiving.

Investors are digesting a series of factors, such as rising bond yields and murky prospects for the Middle East crisis.

On Friday, US stocks ended higher. The Dow Jones Industrial Average rose 0.93 percent, the S&P 500 gained 0.51 percent and the tech-heavy Nasdaq Composite Index advanced 0.48 percent.

"Signs of easing emerged in US-China relations and the US-Iran relationship, but a sharp rise in US Treasury yields limited risk appetite, offsetting the positive factors," Lee Kyung-min, an analyst at Daishin Securities, said.

Trade volume was light at 216.2 million shares worth 21.8 trillion won ($15.9 billion), with winners outnumbering losers 608 to 249.

Foreigners and institutions sold a net 3.2 trillion won and 1 trillion won, respectively, while individuals scooped up 2.6 trillion won.

Market heavyweights closed mixed.

Tech shares ended in negative terrain.

Market bellwether Samsung Electronics went down 5.43 percent to 270,000 won, while its chip rival SK hynix decreased 5.05 percent to 1.77 million won after opening higher.

SK Square, the parent company of SK hynix, fell 7.56 percent to 1.1 million won.

The Korean won was quoted at 1,365.1 won per US dollar as of 3:30 p.m., down 7.6 won from the previous stock market session's close. (Yonhap)