Seoul shares end 0.19% lower on China slowdown woes

South Korean stocks closed 0.19 percent lower Wednesday as investor sentiment weakened over concerns about China’s economic slowdown, analysts said. The local currency fell against the U.S. dollar.

After trading higher, the benchmark Korea Composite Stock Price Index declined 3.85 points to 2,000.37. Trading volume was light at 231.7 million shares worth 3.82 trillion won ($3.68 billion), with losers outnumbering gainers 536 to 261.

“Data on China’s manufacturing activity pointed to lingering concerns about China’s slowdown,” said Kang Hyun-gie, an analyst at IM Investment & Securities Co.

China’s factory activity fell for the fourth straight month in April although the pace of its fall eased from the previous month, according to a preliminary survey by HSBC Holdings Plc and Markit Economics.

The Seoul market started in positive territory, but its uptrend scaled back toward late trading as expectations of lackluster first-quarter corporate earnings results dampened investor sentiment.

Foreign investors bought a net 83 billion won worth of local stocks on the main bourse. But institutional selling pressure sent the KOSPI lower.

Shipbuilders sharply lost ground. Top shipyard Hyundai Heavy Industries fell 1.92 percent to 204,500 won and its rival Samsung Heavy Industries declined 6.42 percent to 29,150 won.

Flat panel giant LG Display slid 0.68 percent to 29,000 won. The company said it swung to a net loss of 82 billion won in the first quarter from a year earlier.

But chip giant SK Hynix closed at a record high of 40,750 won, pushed by foreign buying, up 2.39 percent from the previous session. The share prices of the chipmaker rose for the seventh straight session on earnings optimism, analysts said.

Leading cosmetics maker LG Household & Healthcare climbed 3.12 percent to 495,000 won after the company said that it is examining an option to purchase U.S.-based Elizabeth Arden Inc.

The local currency ended at 1,039.80 won to the greenback, down 2.1 won from Tuesday’s close as importers chased the dollar, dealers said. (Yonhap)