Seoul shares fell on Monday as foreign investors turned net sellers after a weak survey on manufacturing in China added to worries about economic growth and made investors more cautious ahead of key data from the United States this week. "Market atmosphere broadly in Asia was not so good today... but foreign selling on South Korean stocks was not that big, and we are probably not seeing substantial falls ahead," said Park Suk-hyun, a market analyst at KTB Securities.
Investors were likely to be sensitive to economic data coming from the US and China this week, said Park Jung-seop, a market analyst at Daishin Securities. A survey showed that China's factory activity shrank for the first time in seven months in May and growth in the services sector cooled, evidence that the world's second-largest economy is losing further momentum in the second quarter.
Foreign investors, who had been net buyers the past three sessions, on Monday sold a net 19.3 billion Korean won ($17.08 million) of stocks. The Korea Composite Stock Price Index ended down 0.57 percent at 1,989.57 points. Automakers rose firmly after releasing a healthy set of monthly sales. Kia Motors finished up 0.7 percent after the automaker said May sales were up 5.9 percent year-on-year.
Ssangyong Motor shares advanced 1 percent after posting a 25 percent year-on-year increase in sales. Woori Bank, a unit of Woori Finance Holdings Co Ltd, holds about 6.5 million shares in STX Corp, which is owned by STX Group chairman Kang Duk-soo, as collateral to money it lent to ForceTEC. ForceTEC controls 23.1 percent of STX Corp, and is majority owned by STX Group chairman Kang.
STX Offshore & Shipbuilding Co Ltd fell 14 percent and STX Engine Co Ltd shed 12.5 percent. STX Pan Ocean Co Ltd shares lost 8 percent. Battered shipyards rebounded. Hyundai Heavy Industries gaining 1 percent and Samsung Heavy Industries advancing 2.1 percent. The KOSPI 200 benchmark of core stocks edged down 0.45 percent, while the junior KOSDAQ fell 1.46 percent.
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