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Seoul shares shed 0.55 pct on dim economic outlook

Jan. 5, 2015 - 16:40 By KH디지털2

South Korean stocks ended lower Monday as investors were spooked by a series of economic data from Europe and Asia pointing to sagging growth momentum, analysts said.

The South Korean won fell against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) shed 10.69 points, or 0.55 percent, to 1,915.75. Trading volume was moderate at 311 million shares worth 4.66 trillion won (US$4.22 billion), with losers beating gainers 461 to 348. 

Major market heavyweights remained in negative terrain with steelmakers, shipbuilders and utility leading the overall market decline.

Analysts said a continued fall in oil prices and renewed concerns over Greece were stoking fears that the eurozone economy may face a protracted slump.

"Data are still providing few signs that a rebound is in the offing," said Lim Noh-choong, an analyst at I'M Investment & Securities. "Corporate earnings are also widely expected to remain sluggish, which is not pressing the local stock market."

Top automaker Hyundai Motor lost 0.59 percent to end at 168,000 won, and its smaller affiliate Kia Motors declined 0.57 percent to end at 52,000 won.

Hyundai Mobis, the country's largest auto-parts maker, also fell 0.63 percent to end at 238,000 won.  Leading shipbuilder Hyundai Heavy Industries also slumped 4.02 percent to 107,500 won, and Samsung Heavy Industries dipped 3.05 percent to finish at 19,050 won. 

Shipbuilders have been hit by falling oil prices, with current market conditions making it harder to win orders. 

Global chipmaker SK hynix was down 0.21 percent at 47,650 won. 

Cheil Industries, the de facto holding company of Samsung Group, sank by the daily permissible limit of 15 percent to end at 145,500 won, as investors locked in part of gains from the past few sessions. 

Utility shares also declined with state-run Korea Electric Power Corp. shedding 1.64 percent to end at 42,000 won, and POSCO, the country's top steelmaker, also losing 1.59 percent to 279,000 won.

In contrast, top market cap Samsung Electronics added 0.23 percent to close at 1,333,000 won, and top mobile carrier SK Telecom advanced 1.47 percent to 276,500 won.

The local currency ended at 1,109.90 won against the U.S. dollar, down 6.4 won from Friday's close, tracking other peers' falls against the greenback.

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys fell 1.7 basis points to 2.118 percent, and the return on the benchmark five-year government bonds shed 3 basis points to 2.292 percent. (Yonhap)