Seoul stocks hit an eight-week low on Tuesday as fears of a slowdown in the US economy kept investors sidelined, but some beaten-down technology shares such as Samsung Electronics Co Ltd rose.
Following the recent sell-off, investors expect buying interest to slowly return. The 14-day relative strength index dipped to 23.40, signifying oversold conditions.
After plumbing a low of 1,314.59 - a level last seen on March 24 - the benchmark Korea Composite Stock Price Index (KOSPI) settled at 1,329.86, down 0.65 percent.
Foreign investors sold a net of 642.6 billion won ($677.8 million) in shares on the main bourse, extending their selling spree for a 10th straight session.
Traditional defensive plays drove the telecom sector higher with SK Telecom Co up 0.23 percent at 218,500 won and KT Corp up 0.87 percent at 40,600 won. LG Telecom Ltd rose 3.85 percent to 12,150 won. Some major technology stocks have also started to rise. Samsung Electronics climbed 0.96 percent to 630,000 won after plumbing an eight-week low early in the session, while LG Electronics Inc gained 0.14 percent to 71,500 won.
Among the decliners, Shinsegae Co Ltd slid 3.59 percent to 443,500 won. Rate-sensitive stocks continued to struggle, with Kookmin Bank, the country's biggest bank, falling 0.77 percent to 77,300 won and Shinhan Financial Group down 1.67 percent at 44,250 won.
Trade volume was 252.5 million shares worth 3.7 trillion won compared to 285.9 million shares worth 3.2 trillion won on Monday. Decliners led gainers by 485 to 262 with 69 titles ending flat.
Retail investors sold a net 49.1 billion won, while institutional investors bought a net 531 billion won. The June KOSPI 200 futures index shed 0.20 percent to 172.85 and the underlying KOSPI 200 spot index lost 0.47 percent to 172.78.
South Korea's junior and tech heavy Kosdaq market fell 0.52 percent to finish at 640.34 points.
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