Seoul stocks close lower on profit-taking

(ATTN: ADDS bond yields at bottom)
By Lee Youkyung
SEOUL, July 29 (Yonhap) -- South Korean shares ended lower Wednesday as investors
paused after a rally and turned their eyes to the direction of U.S. markets,
analysts said. The local currency fell against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) shed 1.71 points, or 0.11
percent, to 1,524.32 after range-bound trading. Volume was moderate at 475
million shares worth 6.06 trillion won (US$4.88 billion) with gainers
outnumbering losers 509 to 295.
"Investors took a breather as New York stocks have been range-bound for the last
two days," said Lee Seung-woo, an analyst at Daewoo Securities Co. "A continued
buying spree by foreign investors fended off a market tumble."
The main index finished lower for the first time in 12 sessions after dropping as
much as 0.66 percent lower in earlier trading.
Steel and metal stocks ended mixed amid expectations that market demand may
revive, swinging the industry to profits. Top steelmaker POSCO ended 1.57 percent
lower at 469,000 won. Korea Zinc, the world's second-largest zinc smelter,
tumbled 7.9 percent to 131,500 won.
Hyundai Steel jumped 4.85 percent to 67,000 won after reporting
better-than-expected earnings on Tuesday. Its second-quarter earnings dropped 13
percent from a year earlier to 283 billion won (US$228 million), but the company
said its cost-saving measures would help improve its earnings down the road.
Samsung Heavy Industries Co. climbed 4.4 percent to 32,000 won after it clinched
a $50 billion deal with Royal Dutch Shell Plc to build liquefied natural gas
(LNG) facilities.
Tech shares also closed mixed. Chip giant Hynix Semiconductor advanced 2.54
percent to 18,200 won on an expected rise in memory chip prices. Market leader
Samsung Electronics shed 0.43 percent to 697,000 won and its smaller rival LG
Electronics declined 2.26 percent to 129,500 won.
The local currency ended at 1,239.9 won against the greenback, down 3.4 won from
Tuesday's close, on increased demand for dollars, dealers said.
Bond prices, which move inversely to yields, closed mixed. The return on
three-year Treasuries climbed 0.01 percentage point to 4.17 percent while the
benchmark yield on five-year government bonds closed flat at 4.71 percent.
ylee@yna.co.kr
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