Seoul shares end 0.88 pct lower on profit-taking

By Lee Youkyung
SEOUL, Aug. 12 (Yonhap) -- South Korean stocks closed 0.88 percent lower
Wednesday as foreign and institutional investors unloaded financial and auto
firms to lock in profits, analysts said. The local currency lost against the U.S.
dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) fell 13.86 points to
1,565.35, the first drop in five sessions. Volume was moderate at 498 million
shares worth 6.51 trillion won (US$5.22 billion) with losers outnumbering gainers
413 to 381.
"The market was dented by the net selling of foreign investors, who have fueled
the recent bull run," said Kim June-kie, an analyst at SK Securities. "Other
negative leads were overnight Wall Street falls and an imminent U.S. interest
rate decision."
Foreign investors turned net-sellers to end a 20-session buying streak, Financial
and auto shares were among the worst hit.
Shares of all top four financial services companies lost ground following the
heavy falls in U.S. financial stocks. KB Financial Group, the parent company of
top lender Kookmin Bank, slid 3.94 percent to 53,600 won, with No. 4 Hana
Financial Group plummeting 4.72 percent to 34,300 won.
Leading automaker Hyundai Motor shed 1.53 percent to 90,400 won and its smaller
affiliate Kia Motors lost 2.42 percent to 16,150 won despite the
better-than-expected second-quarter earnings.
Tech shares closed mixed. Samsung Electronics lost 1.7 percent to 693,000 won,
while liquid crystal display (LCD) maker LG Display advanced 1.02 percent to
34,750 won on an expected glass shortage as the Tuesday's earthquake in Japan
discontinued LCD production by a Japanese maker.
The local currency ended at 1,246.5 won against the dollar, down 7.4 won from
Tuesday's close, as offshore investors snapped up the greenback, dealers said.
ylee@yna.co.kr
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