Seoul shares end 0.72 pct lower on tech, auto falls

(ATTN: ADDS bond yields at bottom)
SEOUL, April 29 (Yonhap) -- South Korean stocks fell 0.72 percent on Friday as investors unloaded tech shares and automakers to take profits, analysts said. The local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) declined 15.99 points to 2,192.36. Trading volume was moderate at 359.9 million shares worth 11.3 trillion won (US$10.5 billion) with losers outpacing gainers 449 to 364.
"Investors locked in profits from recent gains, and exporters including tech firms sharply lost ground due to the local currency's recent gains to the dollar," said Lee Sun-yup, an analyst at Shinhan Investment Corp.
Lee said the Seoul market is expected to see weaker trading next week as investors will try to find excuses to take profits. But he forecast that bank and builders shares have room for further advances on growing expectations that problems of soured property-linked loans may be solved due to policy responses.
The Seoul bourse has traded in a tight range since it hit a new high on Monday, aided by auto gains. Federal Reserve Chairman Ben Bernanke said on Wednesday that the U.S. central bank will keep the key rate low for an extended period of time although it will end its $600 billion bond-buying program in June as scheduled.
His remarks pushed up global stock markets on Thursday, but the momentum was short-lived on the Seoul market due to investors' profit-taking, analysts said.
Tech and automakers posted sharp losses on profit-taking. Market leader Samsung Electronics shed 0.78 percent to 893,000 won after it reported lower-than-expected net income for the first quarter. Chip giant Hynix Semiconductor fell 1.6 percent to 33,800 won.
Industry leader Hyundai Motor fell 1.6 percent to 246,500 won, and its affiliate Kia Motors lost 3.51 percent to 76,900 won despite its solid first-quarter earnings outcome. Shares of Kia Motors rallied in recent weeks on earnings momentum.
But bank shares jumped due to brisk earnings hopes. Top player KB Financial Group soared 5.12 percent to 57,500 won, and its rival Shinhan Financial Group shot up 6.06 percent to 52,500 won.
The local currency ended at 1,071.50 won to the dollar, down 0.3 won from Thursday's close, amid cautions against further steps to curb the won's ascent, dealers said.
The government said Thursday that it is mulling lowering the ceiling on currency forward positions held by domestic banks and local branches of foreign lenders in a bid to stem sharp growth in short-term external debt.
Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasuries slipped 0.02 percentage point to 3.77 percent and the return on the benchmark five-year government bonds fell 0.04 percentage point to 4.1 percent.
sooyeon@yna.co.kr