Seoul shares ended lower on Tuesday, hit by profit-taking after four consecutive sessions of gains and as investors fretted over the impact of a surging won currency on major exporters. Shares in South Korea's top auto maker, Hyundai Motor Co, fell 2 percent to 54,100 won, rattled by concerns the won's strength against the dollar could dampen exports to the key US market. But a dip in oil prices eased concerns about a slowdown in corporate profits and staved off further losses, analysts said.
The benchmark Korea Composite Stock Price Index (KOSPI) closed down 0.65 percent at 876.61, after rising 4.5 percent over the past four trading days.
The market will open and close one hour later than usual on Wednesday due to college entrance exams for high school students.
"All things considered, the market shouldered gains in the won quite well," said Chu Hee-yeop, an equity strategist at Dongwon Securities. "But if the won continues to gain, the impact on the equities markets is going to be more widely felt."
The South Korean won posted a new seven-year high during local trade, raising concerns about the competitiveness of the country's exports, which have driven growth during a two-year slump in domestic demand.
Shares in Hyundai Heavy Industries Co, the world's top shipbuilder, fell 0.64 percent to 31,100 won on fears a stronger won would reduce the value of its foreign currency-denominated payments. It reported a third-quarter loss on Friday.
Samsung Electronics Co Ltd, the world's top memory chip maker, ended down 0.22 percent at 455,500 won. Banking shares also fell after recent gains on the central bank's unexpected interest rate cut last week.
The country's largest lender, Kookmin Bank, fell 0.85 percent to close at 40,700 won, helping push a sub-index for the sector down 1.14 percent. Shares in top mobile operator SK Telecom Co fell 1.01 percent to 196,500 won.
Oil refiners also fell after crude oil prices extended their recent decline. Top refiner SK Corp fell 0.8 percent to close at 62,100 won and third-ranked S-Oil dipped 1.88 percent to 62,800 won.
Oil was trading at $46.76 a barrel in Asia, well off its peak of $55.67 a barrel hit on October 25.
South Korea is the world's fourth-largest oil importer and has to import all of its crude needs.
Among the day's gainers, shares in Samsung Securities Co surged 5.45 percent to 20,300 won, along with other brokerages, amid hopes retail investors would target equities in search of higher returns, following last week's rate cut.
Trade volume reached 299.3 million shares worth 1.8 trillion won compared to 265.9 million shares worth 2 trillion won on Monday. Losers edged out gainers by 445 to 290 with 71 titles ending flat.
Foreign investors bought a net of 13.4 billion won ($12.23 million) in shares on the main bourse.
The December KOSPI 200 futures index shed 0.45 point to 113.65 and the underlying KOSPI 200 spot index lost 0.79 point to 113.30.
The over-the-counter Kosdaq lost 0.54 percent to finish at 370.90.
Comments
Comments are closed.