Seoul shares close lower on dull Chinese market

South Korean stocks closed lower Wednesday as the Chinese bourse remained sluggish, analysts said. The South Korean won traded lower against the U.S. dollar.

The benchmark Korea Composite Stock Price Index moved down 2.93 points, or 0.15 percent, to 2,008.33. Trading volume was low at 218.1 million shares worth 3.22 trillion won ($3.14 billion), with gainers outpacing losers 465 to 319.

“The sluggish performance of the Chinese stock market continued to weigh down on Seoul shares,” said Bae Sung-young, an analyst at Hyundai Securities Co. China is the top trading partner of Asia’s fourth-largest economy.

“Despite foreign investors maintaining their buying rally, the main index became stagnant at the 2,000-mark as institutional investors became net sellers,” Bae added.

While the main index gathered ground last week helped by gains in Samsung affiliates following the hospitalization of the group’s de facto chairman, there is no other growth momentum in the local market, analysts said, adding the sluggish trend will continue for the time being.

Investors had responded positively after Lee Kun-hee was hospitalized, on hopes that South Korea’s largest conglomerate will accelerate a group-wide restructuring and corporate succession to his heirs.

Foreigners bought a net 159.3 billion won while individuals offloaded a net 35.4 billion won. Institutions sold more shares than they bought at 114.3 billion won.

Retailers closed bearish, with Lotte Shopping moving down 0.32 percent to 308,500 won and E-mart decreasing 1.28 percent to 230,500 won. Trading firm Daewoo International plunged 3.87 percent to 33,500 won.

Tech shares traded mixed, with market behemoth Samsung Electronics falling 0.69 percent to 1,441,000 won while LG Display added 2.5 percent to 28,650 won. Leading chipmaker SK hynix shed 0.24 percent to 41,900 won.

Top mobile carrier SK Telecom closed unchanged at 228,000 won, and LG Uplus, the smallest player, also held steady at 10,050 won. No. 2 player KT shed 1.38 percent to 32,050 won.

Carmakers closed bullish, with Hyundai Motor moving up 0.22 percent to 230,500 won and its auto parts affiliate Hyundai Mobis climbing 0.17 percent. Kia Motors advanced 1.71 percent to 59,400 won.

The local currency ended at 1,026.90 won to the U.S. dollar, down 1.60 won from Tuesday’s close. (Yonhap)