Seoul shares end lower

Seoul shares declined on Friday, extending earlier losses to 1.7 percent on the US Fed's discount rate hike, led by banks and builders including KB Financial Group and Hyundai E&C. "The discount rate hike points to future tightening and exit strategy steps, which are not positive for financial market liquidity, and therefore not positive for the real estate market either," said Park Hyung-jin, an analyst at Kiwoom Securities.
The Korea Composite Stock Price Index (KOSPI) finished down 27.29 points to 1,593.90. Lee Kyoung-su, a market analyst at Taurus Investment & Securities, said speculation of further Dubai debt problems further chilled market sentiment, "which was already fragile to begin with."
North Korea's reported plans for live-fire exercises off near sea borders with the South "was an added negative, though it did not make a big impact." Lee added. Foreign investors remained net buyers for a fourth consecutive session, purchasing a net 43.8 billion won ($37.95 million) worth of stocks. Banks led declines, with KB Financial Group losing 3.46 percent and Hana Financial Group dropping 3.64 percent.
"The falls might have to do with concerns about banks' exposure to Dubai, but as the government has disclosed before, local banks' exposure to the region is negligible," said Ku Yong-uk, an analyst at Daewoo Securities. Losses in construction issues further fueled the downward run. Daewoo Engineering & Construction lost 1.73 percent and Hyundai Engineering & Construction shed 2.13 percent.
Retail issues outperformed amid expectations of strong sales over the Lunar New Year holiday in February. Shinsegae Co Ltd, the country's No 1 retailer, rose 0.78 percent and GS Shopping gained 3.64 percent. Institutions picked up a net 1 billion won worth of stocks, and retail investors offloaded a net 17.5 billion won.
Decliners outnumbered advancers 611 to 175 with 90 issues ending flat. Trading volume stood at 340.3 million shares worth 3.7 trillion won, compared with 308 million shares worth 3.2 trillion won in the previous session. The KOSPI 200 March futures index ended down 3.85 points at 209.00, and the KOSPI 200 spot index fell 3.85 points to 208.70. The junior Kosdaq market retreated 1.74 percent to close at 504.39.