Seoul shares decline slightly on profit-hunting

South Korean stocks retreated 0.34 percent on Monday as investors indulged in profit-taking after a weeks-long strong performance of the market, analysts said. The local currency gained against the U.S. greenback.

The benchmark Korea Composite Stock Price Index lost 6.82 points to 2,010.35, a drop from a five-month high of 2,017.17 in the previous session. Trading volume was thin at 191.7 million shares worth 2.65 trillion won ($2.59 billion), with losers slightly outnumbering gainers 413 to 370.

“Investors took a breather as there has been no price adjustment since the KOSPI started its rally in early May and surpassed the 2,010 line last week,” Kwak Byung-ryul from Eugene Investment & Securities Co. said.

“And the U.S. Memorial Day holiday seems to have affected foreigners, who have led the recent rally, as they tend to refrain from betting when Wall Street is closed.”

Overseas investors scooped up 83.1 billion won worth of local shares, compared with 132 billion won in purchases in the previous session, while institutions dumped 103.2 billion won worth of shares.

Shares finished mixed across the board.

Samsung Electronics, the world’s biggest smartphone maker, fell 0.42 percent to close at 1,422,000 won. It has been on a steep rise since its chairman Lee Kun-hee was hospitalized on May 11, hitting 1,451,000 won last week.

Leading steelmaker POSCO lost 0.49 percent to 307,500 won and the biggest shipyard Hyundai Heavy Industries slid 0.26 percent to 190,000 won.

Carmakers were among the winners, with market leader Hyundai Motors rising 0.86 percent to 235,000 won and Kia Motor climbing 0.17 percent to 60,500 won.

No. 1 Internet portal Naver tumbled 3.99 percent to 745,000 won after its rival Daum Communications announced it was acquiring leading mobile messenger operator Kakao.

Daum was suspended from trading by the bourse operator for a suspected backdoor listing of Kakao. It closed at 78,100 won in the previous session.

WeMade Entertainment, an online game maker that has stakes in Kakao, shot up to the daily limit of 15 percent to close at 47,600 won.

The local currency ended at 1,024 won to the U.S. dollar, up 0.6 won from Friday’s close. (Yonhap)