Seoul stocks close down 1.07 pct on tech setbacks

(ATTN: ADDS bond yields at bottom)
SEOUL, April 24 (Yonhap) -- South Korean stocks ended down 1.07 percent on Friday
as investors dumped tech shares including Samsung Electronics to take profits
from their recent rallies, analysts said. The local currency rose against the
U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) fell 14.7 points to
1,354.1, snapping its four-day winning streak. Volume was heavy at 664.46 million
shares worth 8.01 trillion won (US$5.9 billion), with losers outpacing gainers
550 to 285.
"The index started higher as optimism grew that the economic downturn will ease
but soon lapsed into negative territory due to profit-taking in tech and auto
shares which had driven the recent market rally, said Choi Soon-ho, an analyst at
Eugene Investment & Securities.
Samsung Electronics, the world's leading computer memory-chip maker, plunged 5.58
percent to 592,000 won after posting a 72-percent decline in first-quarter
profits. Smaller rival Hynix Semiconductor lost 4.73 percent to 15,100 won and
home appliance giant LG Electronics fell 4.5 percent to 106,000 won.
Auto issues also weighed on the market. Top carmaker Hyundai Motor fell 2.06
percent to 66,700 won after climbing 3.18 percent a day earlier. Its affiliate
and second-largest automaker Kia Motors shed 4.21 percent to 10,250 won even
after reporting that it returned to profit during the first quarter.
Shipyards, however, continued to rally on an upbeat outlook for demand.
Shipbuilding giant Hyundai Heavy Industries jumped 3.18 percent to 227,000 won.
Earlier in the day, the Bank of Korea said that the nation's gross domestic
product (GDP) grew 0.1 percent during the first quarter from three months
earlier, raising hopes that the pace of economic downturn might be easing. For
the last quarter of 2008, GDP plunged 5.1 percent.
The local currency finished at 1,343.2 won to the dollar, up 4.8 won from
Thursday's close, as investors bet that financial market will further stabilize,
dealers said.
Bond prices, which move inversely to yields, surged. The return on three-year
Treasuries plunged 0.13 percentage point to 3.57 percent, while the benchmark
yield on five-year government bonds fell 0.14 point to 4.18 percent.
kokobj@yna.co.kr
(END)