Seoul shares close 0.29 pct lower on tech, auto losses

(ATTN: ADDS bond yields at bottom)
By Lee Youkyung
SEOUL, Sept. 4 (Yonhap) -- South Korean stocks closed 0.29 percent lower Friday
as investors unloaded tech and auto firms on jitters over their recent gains,
analysts said. The local currency rose against the U.S. dollar.
The benchmark Korean Composite Stock Price Index (KOSPI) shed 4.63 points to
1,608.9 in volatile trading. Volume was moderate at 586 million shares worth 7.02
trillion won (US$5.65 billion) with decliners outpacing advancers 410 to 395.
"Investors were cautious about the recent bull run," said Kim Byung-yeon, an
analyst at Woori Investment & Securities. "The local index bucked the trends in
Shanghai and New York markets."
Chip giant Hynix Semiconductor sank 5.67 percent to 20,800 won after Daewoo
Securities downgraded its investment rating for the firm from "buy" to "neutral,"
saying that the expected rise in demand for chips has already been factored in.
Autos and auto parts makers closed lower as they came under pressure after gains
in recent sessions, with No. 2 Kia Motors Corp. dropping 3.47 percent to 16,700
won. Top tiremaker Hankook Tire Co. fell 3.62 percent to 22,600 won. Leading auto
parts producer Hyundai Mobis Co. also shed 3.19 percent to 136,500 won.
But financial shares advanced modestly on foreign and institutional buying. KB
Financial Group, the parent company of top lender Kookmin Bank, gained 1.45
percent to 55,800 won.
The local currency closed at 1,241.5 won to the greenback, up 4.5 won from
Thursday's close, as offshore investors continued to buy local stocks, dealers
said.
Bond prices, which move inversely to yields, closed lower. The return on
three-year Treasuries added 0.02 percentage point to 4.30 percent and the
benchmark yield on five-year government bonds gained 0.01 percent to 4.79
percent.
ylee@yna.co.kr
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