Seoul shares end 0.7 pct down on institutional selling

SEOUL, March 19 (Yonhap) -- South Korean stocks closed slightly lower Thursday as institutional selling overshadowed overnight gains in U.S. markets, analysts said. The local currency rose against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) fell 8.14 points, or 0.7
percent, to 1,161.81. Volume was heavy at 525.6 million shares worth 5.05
trillion won (US$3.63 billion), with losers outpacing gainers 441 to 364.
"The key stock index ended weaker as institutional investors dumped blue-chip
shares to take profits. The Seoul bourse may undergo some volatility for the time
being, as investors still wonder when global credit and financial markets will
stabilize," said Lee In-koo, an analyst at Daewoo Securities.
Top carmaker Hyundai Motor tumbled 4.62 percent to 51,600 won, and consumer
electronics giant LG Electronics plunged 5.41 percent to 84,000 won.
Financial shares also lost ground. KB Financial Group, which controls top lender
Kookmin Bank, sank 5.31 percent to 32,100 won and Hana Financial Group dropped
4.31 percent to end at 21,100 won.
Fixed-line leader KT gained 3.63 percent to 40,000 won as it won regulatory
approval for a merger with the nation's second-largest mobile carrier KTF, which
went up 3.28 percent to 28,300 won.
The local currency closed at 1,396 won to the dollar, up 25.5 won from
Wednesday's close, on expectations that South Korea may post a large trade
surplus this month, dealers said.