Seoul shares ended lower on Monday as economic worries deepened after a batch of poor data, with Shinhan Fin falling on rumours of a new rights issuance and Hyundai Motor slipping after weak January sales. The Korea Composite Stock Price Index finished down 1.3 percent at 1,146.95 points, after earlier gaining as much as 0.7 percent to a high of 1,170.70.
"Poor domestic export data weighed significantly on sentiment, and there are concerns that the $825 billion US economic stimulus plan, which still needs Senate approval, has hurdles to overcome," said Kim Young-june, a market analyst at SK Securities.
The Ministry of Knowledge Economy said South Korean exports in January shrank by a record pace as the global downturn deepened. "The main index will probably move in a boxed range at around the 1,100 level for some time. However foreign investors' continued buying comes as a good signal, though whether the money is here to stay is another question," Kim added.
Foreign investors were buyers of a net 236.35 billion won ($169.7 million), picking up Seoul shares for a third consecutive session. Meanwhile analysts also played down the impact of North Korea's growing restlessness on Seoul stock markets. North Korea warned on Sunday that the downward spiral of relations with South had pushed the peninsula to the brink of war, two days after it said it was scrapping all pacts with its Southern neighbour.
"As long as the country's sovereign rating remains stable, it will not be a big problem. But if we see a more aggressive form of confrontation, say in the sea, we may have to start to worry," said Lee Sun-yeob, a market analyst at Goodmorning Shinhan Securities. Hyundai Mobis ended 4.29 percent higher after the auto parts maker said its quarterly net profit more than doubled to 374.6 billion won from 147.9 billion won a year ago.