Seoul stocks end down 0.36 pct on steel, shipyard losses

SEOUL, May 18 (Yonhap) -- South Korean shares closed 0.36 percent lower Monday as investors unloaded steel, shipyard and financial shares amid lingering concerns over an economic slowdown, analysts said. The local currency fell against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) lost 5.05 points to
1,386.68, after falling to as low as 1,366.58 in early trading. Volume was
moderate at 546.14 million shares worth 5.95 trillion won (US$4.72 billion), with
losers outpacing gainers 517 to 311.
"Without significant market-moving news, investors seemed to take a breather
after recent rallies," said Kim Jung-hyun, an analyst at Goodmorning Shinhan
Securities. "Still, foreigners continued buying and investor sentiment remained
robust, helping prevent the index from declining further."
Steel shares were among the losers as investors remained jittery about a
protracted economic slowdown. Top steelmaker POSCO lost 0.37 percent to 401,500
won, while second-ranked Hyundai Steel plunged 2.85 percent to close at 61,300
won.
Leading shipyard Hyundai Heavy Industries also fell 1.92 percent to 229,500 won,
while Hyundai Mipo Dockyard shed 2.09 percent to 140,500 won.
Financial shares added to a downbeat market mood, with insurance companies losing
significant ground. Top non-life insurer Samsung Fire & Marine Insurance fell
2.13 percent to 184,000 won and Hyundai Marine & Fire Insurance dived 6.1 percent
to 15,400 won.
Auto shares, however, closed higher. No. 1 carmaker Hyundai Motor rose 1.1
percent to 64,200 won and smaller Kia Motors jumped 4.8 percent to 13,100 won on
expectations its overseas sales will grow after it unveils new models.
The local currency ended at 1,259.5 won against the dollar, down 2.5 won from
Friday's close, as stock market setbacks turned investors away from risky assets,
dealers said.
Bond prices, which move inversely to yields, closed sharply higher. The return on
three-year Treasuries plunged 0.04 percentage point to 3.75 percent, and the
benchmark yield on five-year government bonds fell 0.06 percentage point to 4.41
percent.
kokobj@yna.co.kr