Seoul shares end down

Seoul shares closed lower on Monday led by heavy industry issues, with shipbuilders tumbling on news of cancelled orders, while worries about the US economy after bleak job data on Friday further dampened market sentiment. The Korea Composite Stock Price Index closed 1.95 percent lower at 1,543.05 points.
"Today's falls were largely led by heavy industry issues such as shipbuilders, which dropped on order cancellations, and steelmakers, which were hit by worries about steel demand amid slowing economies," said Y.S. Rhoo, a market analyst at Hyundai Securities.
"Signs of the economic slowdown's effect on heavy industry have started to show," Rhoo added. Shipbuilders led losses on a recent batch of orders being scrapped after some European shipping companies failed to make pre-payments. Daewoo Shipbuilding and Marine Engineering said on Friday it had cancelled a 619 billion won ($609.4 million) order to build eight container ships for an unidentified European company, while Hyundai Mipo Dockyard also said that it had cancelled a 197 billion won ($193.9 million) order for four product carriers from an unidentified European firm.
Shares in Daewoo Shipbuilding plunged 13.85 percent to 35,450 won and Hyundai Mipo tumbled 6.58 percent to 184,500 won. Hyundai Heavy Industries also fell 10.41 percent to 275,500 won and Samsung Heavy Industries declined 7.91 percent to 35,500 won.
Steelmakers also retreated on worries about demand for steel products, with POSCO shedding 3.39 percent to 513,000 won and Hyundai Steel down 3.21 percent to 66,300 won. However shares in KT Corp jumped on local media reports that South Korea's top fixed-line and broadband firm is set to submit a request for approval of its merger with mobile unit KTF Co Ltd to the Korea Communications Commission, a regulatory body.
KT closed up 3.84 percent to 43,300 won, and KTF rose 1.69 percent to 27,000 won. Kia Motors also gained after the carmaker posted strong sales for July, supported by rising demand for small cars amid high oil prices. South Korea's No 2 auto maker said late on Friday that it posted a 39 percent jump in sales in July from a year ago, led by healthy results in compact models such as the Morning. Its overseas sales also gained 39 percent to 78,042 units in July compared to the previous year.
Kia Motors shares jumped 2.42 percent to 12,700 won. However, shares in affiliate Hyundai Motor Co sank 2.4 percent to 69,000 won after Hyundai announced a 3.6 percent fall in total sales and a 13.6 percent decline in US sales in July.
Transporters such as Korean Air Lines also fell after US crude rose to settle above $125 a barrel on Friday, worsening cost burden worries. Korean Air Line lost 6.31 percent to 41,550 won and Asiana Airlines dipped 1.31 percent to 4,510 won. Foreign investors sold 99 billion won worth of shares, and local institutions sold a net 256 billion won of shares on the main board. Local retail investors bought a net 336 billion won.
Decliners outnumbered advancers by 637 to 164, with 89 titles ending flat. Trade volume stood at 242 million shares worth 4.11 trillion won, compared with 228 million shares worth 3.3 trillion won on Friday. The KOSPI 200 September futures index fell 3.10 points to 199.40 and the KOSPI 200 spot index lost 3.87 points to 197.56. The junior Kosdaq market shed 1.73 percent to 526.49.