South Korean stocks ended lower on Tuesday as investors took a breather following a recent rally and weak economic data from China, analysts said. The South Korean won rose against the U.S. dollar.
The benchmark Korea Composite Stock Price Index fell 14.16 points, or 0.68 percent, to 2,066.26. Trading volume was moderate at 341.5 million shares worth 4 trillion won ($4 billion), with decliners outnumbering gainers 503 to 301.
“Investors backed away from the temporarily overheated market and institutions turned to a selling mode,” said Eric Lee, an analyst at Daishin Securities Co.
“Downbeat economic data from China also dented investor sentiment, but overall the upward trend is still valid,” he said.
HSBC’s China services Purchasing Managers Index showed that the figure for July came in at 50, falling 3.1 points from the previous point. A reading above 50 signals an economic expansion, while a figure smaller than the benchmark points to a contraction.
Large caps mostly lost ground. Market bellwether Samsung Electronics slipped 0.08 percent to 1,316,000 won and steel giant POSCO slumped 3.57 percent to 324,000 won.
Automakers also weighed on the KOSPI, with Hyundai Motor falling 0.63 percent to 236,000 won and its affiliate Kia Motors retreating 1.61 percent to 61,300 won.
In contrast, SK Telecom rose 2.28 percent to 269,000 won on rosy outlooks for its earnings in the second half.
State-run power provider KEPCO also ended up 1.52 percent at 43,350 won.
The local currency finished at 1,028.2 won against the greenback, up 5.3 won from Monday’s close. (Yonhap)
