Seoul shares end 0.67 pct lower on profit-taking

(ATTN: ADDS bond yields at bottom)
SEOUL, Aug. 25 (Yonhap) -- South Korean stocks closed 0.67 percent lower Tuesday
as investors locked in profits from the previous session's sharp gains, analysts
said. The local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) declined 10.84 points to
1,601.38. Volume was moderate at 453.2 million shares worth 7.47 trillion won
(US$5.99 billion), with losers outpacing gainers 471 to 337.
"The Seoul bourse lost ground as investors took a breather. Its earlier losses
were not trimmed in late trading after China's equity market tumbled," said Lee
Sun-yup, an analyst at Goodmorning Shinhan Securities Co. "But I think the upward
momentum remains alive thanks to rising prospects for an economic recovery."
The KOSPI surpassed the 1,600-point mark Monday for the first time in 13 months
as investors snapped up tech, automaker and financial shares on growing optimism
for an economic recovery.
Shares that led the previous session's bull run lost ground Tuesday. Market
leader Samsung Electronics shed 1.02 percent to 775,000 won and top carmaker
Hyundai Motor declined 0.93 percent to 106,500 won.
But flat panel giant LG Display rose 2.55 percent to 36,250 won on reports that
it has reached a preliminary deal with the city of Guangzhou, China, to build a 5
trillion won next-generation liquid crystal display (LCD) plant there.
Leading shipper Hanjin Shipping advanced 4.49 percent to 20,950 won after
announcing it has clinched a 1.38 trillion won deal with top steelmaker POSCO to
transport iron ore.
The local currency ended at 1,248.2 won against the greenback, down 8.2 won from
Monday's close, as companies snapped up the greenback to settle import bills,
dealers said.
Bond prices, which move inversely to yields, closed higher. The return on
three-year Treasuries declined 0.06 percentage point to 4.34 percent and the
benchmark yield on five-year government bonds shed 0.06 percentage point to 4.8
percent.
sooyeon@yna.co.kr
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