Seoul shares end lower on profit-taking

SEOUL, Feb. 9 (Yonhap) -- South Korean stocks closed lower Monday as retail investors sold local stocks to lock in profits following the key stock index's recent gains, analysts said. The local currency inched up against the U.S. dollar.

Reversing earlier gains, the benchmark Korea Composite Stock Price Index (KOSPI)
declined 7.57 points, or 0.63 percent, to 1,202.69. Volume was moderate at 469
million shares worth 4.84 trillion won (US$3.5 billion), with gainers outpacing
losers 472 to 339.
"Retail investors dumped shares in a bid to take profits following the broader
market's recent rally. Hopes for the passage of a U.S. economic stimulus package
plan in the Senate was widely factored into the market," said Park Suk-hyun, an
analyst at Eugene Investment & Securities Co.
The KOSPI started stronger, mirroring rises in the U.S. markets, which were
lifted by rising expectations for the passage of a stimulus package in the Senate
despite dismal job market readings.
But investors' profit-taking and lingering concerns over the deepening economic
slump turned the KOSPI lower in the morning session, though foreign investors
scooped up a net 45.6 billion won worth of local stocks, continuing their bullish
run for the ninth straight session.
On Friday, the Seoul bourse breached the 1,200-point level for the first time in
about a month, helped by a buying spree of offshore investors. The stock index
rose 4.14 percent last week alone.
Tech shares traded in negative territory. Market leader Samsung Electronics fell
3.3 percent to 527,000 won and consumer electronics giant LG Electronics shed
2.44 percent to 76,100 won. Chip giant Hynix Semiconductor gained 0.75 percent to
9,450 won after announcing that it has developed the world's first 1-gigabit
dynamic random access memory (DRAM) chip using 44-nanometer technology.
Automakers also lost ground. Top automaker Hyundai Motor fell 3 percent to 51,700
won and its affiliate Kia Motors tumbled 5.41 percent to 8,560 won. Ssangyong
Motor fell by the daily limit of 15 percent to 1,130 won on the first day of
trading since shares of the country's smallest automaker were suspended last
month due to its filing for court receivership.
Financial shares gained ground, however, shrugging off the announcement by Moody's
Investors Service that it was downgrading the credit ratings of eight South Korean
banks.
The global credit appraiser revised down the foreign currency long-term senior
debt ratings of the banks, including Kookmin Bank, to "A2", citing their heavy
dependence on the government to secure funding. KB Financial Group added 0.56
percent to 35,750 won and its rival Shinhan Financial Group rose 0.34 percent to
29,350 won.
The local currency ended at 1,381 won to the dollar, up 2 won from Friday's
close, as offshore investors increased their holdings of Seoul stocks, dealers
said.