Seoul shares end lower on foreign selling

South Korean stocks closed lower Wednesday as foreign investors offloaded local stocks on profit-taking, analysts said. The local currency fell against the US dollar.

The benchmark Korea Composite Stock Price Index slid 5.39 points, or 0.22 percent, to finish at 2,434.51. Trading volume was moderate at 332 million shares worth 6.4 trillion won ($5.7 billion) with losers outpacing gainers 419 to 385.

The local stock market opened slightly higher, taking a cue from overnight Wall Street gains, but caved as foreigners sold holdings.

"The stocks sold by foreigners were mostly concentrated on tech shares, including Samsung Electronics and SK hynix, indicating a move to cash in profits," said Lee Kyoung-min, an analyst at Daishin Securities.

Foreigners and retail investors offloaded shares worth a net 354 billion won and 101 billion won, respectively, while institutions scooped up 460 billion won, keeping the main index from falling further.

Market heavyweights traded mixed.

Samsung Electronics, the top cap here, edged down 0.32 percent to end at 2,492,000 won, and SK hynix, a major chipmaker, dropped 5.11 percent to 66,800 won.

Naver, the operator of the country's top Internet portal, shed 1.43 percent to 825,000 won.

Insurers also led the decline with No. 1 life insurer Samsung Life Insurance retreating 2.36 percent to 124,000 won.

AmorePacific, the country's top cosmetics maker, lost 1.22 percent to 284,000 won, after it announced that its second-quarter net profit plunged 59.6 percent on-year.

In contrast, No. 1 automaker Hyundai Motor climbed 1.37 percent to end at 148,000 won and its sister company Kia Motors also rose 0.27 percent to 36,900 won.

Steelmakers were also among the gainers, with the leading player POSCO rising 2.01 percent to 329,500 won.

The local currency ended at 1,121.80 won against the greenback, down 6.50 won from the previous session's close.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose 2 basis points at 1.729 percent, and the return on the benchmark five-year government bond gained 2.9 basis points to 1.932 percent. (Yonhap)