Seoul stocks close down 0.51 pct on finance, construction setbacks

(ATTN: ADDS bond yields at bottom)
SEOUL, March 27 (Yonhap) -- South Korean stocks closed down 0.51 percent in a
volatile session Friday as investors dumped financial and construction shares,
analysts said.

The local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) lost 6.29 points to
1,237.51, ending its five-day winning streak. Volume was heavy at 694.3 million
shares worth 6.9 trillion won (US$5.1 billion), with losers outnumbering gainers
529 to 293.
"Investors seemed to believe that the index had risen too much in a short period
of time, which prompted sell-offs in overvalued shares," said Lee Seung-woo, an
analyst at Daewoo Securities. "Sentiment still remained solid though, preventing
such a sharp plunge as witnessed before."
Bolstered by overnight rallies in U.S. markets, the index got off to a strong
start, rising as much as 1 percent in early trading, but soon fell into an
up-and-down mode on profit-taking, he added.
Most shares ended in negative territory, with financial and construction
companies driving the downturn.
KB Financial Group, the owner of the nation's leading bank, fell 1.36 percent to
36,200 won, while Woori Finance Holdings plunged 7.8 percent to 7,210 won.
Construction shares also lost ground after the government unveiled the list of
non-viable small-sized builders and those subject to debt workout. No. 1 builder
Daewoo Engineering & Construction plunged 4.2 percent to 9,580 won.
Tech shares bucked the downward trend on optimism that business outlooks will
likely improve. Industry leader Samsung Electronics jumped 2.46 percent to
584,000 won, while smaller chipmaker Hynix Semiconductor advanced 2.56 percent
after rising 14.71 percent a day earlier.
Auto issues rallied for a second day after the government unveiled
boost-demanding measures on Thursday. Hyundai Motor gained 2.61 percent to 55,100
won.
On Thursday, U.S. stocks closed higher for a second day. The Dow Jones industrial
average rose 2.25 percent to a six-week high on better-than-expected corporate
earnings and cost-cutting moves by embattled General Motors.
The won finished at 1,349 won against the U.S. dollar, down 18.5 won from
Thursday's close, marking the first decline in five days.
Bond prices, which move inversely to yields, closed mixed. The return on
three-year Treasuries jumped 0.03 percentage point to 3.74 percent, while
benchmark yield on five-year government bonds fell 0.01 percentage point to 4.59
percent.
kokobj@yna.co.kr
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