South Korean stocks closed 0.4 percent lower Tuesday as foreigners became net sellers of local shares amid the weak yen, analysts said. The local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) shed 7.68 points to finish at 1,918.63. Trading volume was low at 253 million shares worth 3.4 trillion won (US$3.08 billion) with gainers outnumbering decliners 478 to 316.
"The local stock market lost steam as the Japanese currency is anticipated to trade lower against the won down the road," said Kim Young-jun, an analyst at SK Securities Co.
The yen weakened to 100 per the U.S. dollar in Asian trading Monday after the Group of 20 major economies stopped short of criticizing Japan's powerful monetary easing in a communique released following a G20 meeting in Washington.
Japan's efforts to bolster quantitative easing by giving an extra push to the weak yen also sounded alarm bells for the local stock market, as it is feared to inflict foreign exchange losses on exporters.
Foreigners offloaded a net 121.1 billion won, extending their selling streak to eight sessions. In contrast, retail investors scooped up a net 57.8 billion won and institutions purchases a net 38.3 billion won.
Steelmakers closed lower due to a decline in global steel prices, with top industry player POSCO falling 0.31 percent to 319,500 won and Hyundai Steel losing 3.91 percent to 68,900 won.
Builders also traded lower, with No. 1 player Hyundai Engineering & Construction moving down 1.86 percent to 57,900 won and Daelim Industrial losing 2.39 percent to 73,500 won.
Tech blue chips finished bearish, with market behemoth Samsung Electronics decreasing 1.33 percent to 1,483,000 won and top chipmaker SK hynix falling 0.52 percent to 28,850 won. Flat panel manufacturer LG Display lost 1.15 percent to 30,100 won.
In contrast, mobile carriers gathered ground, with top SK Telecom rising 0.8 percent to 190,000 won and No. 3 player LG Uplus gaining 0.86 percent to reach 9,410 won.
Retailers also closed higher, with Hyundai Glovis adding 1.76 percent to 173,000 won and CJ Korea Express advancing 1.46 percent to 104,000 won.
The local currency ended at 1,120.80 won against the greenback, down 1.80 won from Monday's close, as foreign investors continued to offload local shares, dealers said. (Yonhap News)
