Seoul shares decline

Seoul shares fell on Thursday, snapping a two-session gaining streak, with losses by auto issues like Hyundai Motor weighing, but rises in retail stocks such as Lotte Shopping lending support. The Korea Composite Stock Price Index (KOSPI) finished down 0.38 percent to 1,621.19 points.
"The market currently lacks catalysts to sustain the rebound seen earlier this week, and is having problems rising to its 60 and 120-day moving averages," said Kim Seung-han, a market analyst at Hi Investment & Securities. The KOSPI's 60 and 120-moving averages are around 1,634 points and 1,640 points respectively.
"Investors want to see the China market reaction to China's recent tightening moves, and will likely act with caution for the remainder of this week," Kim added. Foreign investors were buyers of a net 176 billion won ($153.9 million) worth of stocks, purchasing for a third session, but retail investors offloaded a 38.8 net billion won.
Auto issues declined following their recent strong advances amid Toyota's recall crisis. "The Toyota news is no longer new and has run its course as a positive factor for domestic auto shares," said Ko Tae-bong, an analyst at IBK Securities. "Investors now want to see the impact of the Toyota crisis in sales data," Ko added.
Hyundai Motor lost 1.7 percent and Kia Motors shed 1.84 percent. Falls in banks also weighed, with Woori Finance Holdings shedding 2.53 percent after a top regulator said merging Woori Finance with another firm was an option if the planned sale of the group hit a snag.
"There are worries about a potential block sale of a portion of the stake in Woori held by the government, prompting overhang concerns," said Choi Chung-uk, an analyst at Daishin Securities. A state agency in late November last year offered 32.2 million shares of Woori Finance in block trade. KB Financial Group fell 0.95 percent and Shinhan Financial Group lost 0.23 percent.
Technology issues turned lower after strong rises in the previous session. Hynix Semiconductor, the world's No 2 memory chip maker, shed 0.89 percent and Samsung Electronics, the world's No 1, fell 0.51 percent. But retail issues rose, with Lotte Shopping Co Ltd, South Korea's No 2 retailer by market value, gaining 1.09 percent and Shinsegae Co Ltd climbing 2.38 percent.
Institutions offloaded a net 110 billion won. Decliners outnumbered advancers 430 to 327 with 111 issues ending flat. Trading volume stood at 308 million shares worth 3.2 trillion won, compared with 377.7 million shares worth 4.0 trillion won in the previous session. The KOSPI 200 March futures index ended down 0.75 points at 212.85, and the KOSPI 200 spot index fell 0.89 points to 212.55. The junior Kosdaq market retreated 0.36 percent to close at 513.33.