South Korean stocks closed 0.38 percent lower Monday, as investors remained cautious to make bets amid lingering uncertainties about the U.S. monetary policy, analysts said. The local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) retreated 7.57 points to finish at 1,977.30. Trading volume was light at 282.3 million shares worth 3.28 trillion won ($3.07 billion) with losers far outpacing gainers 637 to 188.
After starting higher at the opening bell, the main index erased gains and turned to losses as foreigners and institutions opted to unload shares.
"The market's jittery over the Fed's uncertain monetary policy.
But as you can see from the payroll data, the U.S. economy is gaining confidence so the latest foreign selling may just be for a short while," said Lim Dong-lak, an analyst at Hanyang Securities Co.
Overseas investors dumped a net 72.8 billion won, extending their selling streak for the sixth consecutive session, with institutions also offloading a net 14.7 billion won. Retailers, in contrast, scooped up a net 90.5 billion won.
Most shares lost ground across the board, with logistics and retailers driving down the main bourse. Korean Air Lines, the top air carrier, tumbled 5.47 percent to 31,100 won and Hyundai Merchant Marine plunged 7.94 percent to 11,600 won. Lotte Shopping dipped 3.66 percent to 369,000 won.
But tech and financial blue chips finished in positive territory. Samsung Electronics gained 1.28 percent to 1,428,000 won and state-run banking group Woori Finance Holdings climbed 1.25 percent to 12,150 won.
The local currency ended at 1,072.50 won against the greenback, down 7.6 won from Friday's close, as foreigners reduced their holdings in local equities, dealers said. (Yonhap News)
