Korean stocks closed lower Monday as investors took a wait-and-see stance ahead of the release of economic indicators later this week, analysts said. The Korean won rose against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) dropped 16 points, or 0.8 percent, to 1,978.15. Trade volume was moderate at 324.38 million shares worth 3.84 trillion won ($3.77 billion), with losers outnumbering gainers 616 to 200.
Analysts said investors awaited the releases of the U.S. Institute for Supply Management (ISM) index and China's Purchasing Managers Index.
"It is likely that investors will take a breather for a short-term period amid the wait-and-see sentiment," said Lee Jun-hee, an analyst at NH Investment & Securities.
Analysts added investors also refrained from making transactions as Asia's major stock markets celebrate a holiday in early May. The Korean government also decided to designate Friday as a national holiday in an effort to boost domestic consumption that is critical for economic growth.
This allows people to take four days off in a row this week as Korea celebrates Children's Day on Thursday.
Overseas investors offloaded a net 32.6 billion won, while individuals scooped up a net 180 billion won. Institutions sold more shares than they bought at 177 billion won.
No. 1 carmaker Hyundai Motor fell 0.7 percent to 142,500 won, and its smaller sister Kia Motors remained unchanged at 47,900 won. Top auto parts maker Hyundai Mobis also stood still at 260,500 won.
Shipbuilders also closed bearish, with industry leader Hyundai Heavy Industries decreasing 4.31 percent to 111,000 won and Samsung Heavy Industries plunging 5.61 percent to 10,100 won. Daewoo Shipbuilding & Marine Engineering dropping 1.63 percent to 5,430 won.
Builders lost ground, with Hyundai Engineering & Construction falling 3.23 percent to 38,900 won and Daelim Industrial losing 1.98 percent to 88,900 won. Daewoo Engineering & Construction shed 2.68 percent to 6,180 won.
Steelmakers also traded mostly weaker, with No. 1 POSCO losing 4.99 percent to 228,500 won and Hyundai Steel moving down 3.5 percent to 60,700 won.
The local currency closed at 1,137.80 won against the greenback, up 1.5 won from the previous session. (Yonhap)
