(LEAD) Seoul shares end 0.94 pct lower on bank, automaker losses

(LEAD) stocks-summary


(ATTN: ADDS bond yields at bottom)
By Kim Soo-yeon
SEOUL, Sept. 28 (Yonhap) -- South Korean stocks closed 0.94 percent lower Monday
as investors unloaded bank and automaker shares following declines in U.S.
markets, analysts said. The local currency fell against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) shed 15.93 points to
1,675.55, the fourth straight days of falls. Volume was moderate at 436.3 million
shares worth 6.46 trillion won (US$5.4 billion), with losers outpacing gainers
539 to 241.
"Wall Street losses dented investor sentiment, with foreign investors continuing
to sell Seoul stocks," said Lee Sun-yup, an analyst at Shinhan Investment Corp.
"But I do not think that the KOSPI's upward movement was snapped because momentum
for an economic recovery remains intact."
U.S. markets closed lower Friday as disappointing economic data raised questions
about the sustainability of the economic recovery. The Dow Jones industrial
average shed 0.44 percent and the tech-laden Nasdaq composite index declined 0.79
percent.
Most shares traded in negative territory, led by declines in exporters and
financial shares.
Top financial services company KB Financial Group fell 2.02 percent to 58,300 won
and its rival Shinhan Financial Group tumbled 3.25 percent to 46,100 won. Top
automaker Hyundai Motor shed 4.33 percent to 110,500 won.
But leading mobile carrier SK Telecom advanced 2.92 percent to 176,000 won as the
move by the country's mobile phone carriers will lower their fee rates dispelled
uncertainty surrounding the sector. The country's telecom regulator said Sunday
Korea's three mobile operators will lower their rates in a bid to help households
cut their communications costs amid criticism that they have charging higher
rates than carriers in other member countries of the Organization for Economic
Cooperation and Development.
Trading company Daewoo International jumped 9.95 percent to 36,450 won after
leading steelmaker POSCO said it is mulling to buying the firm.
The local currency ended at 1,195.9 won against the greenback, down 9.8 won from
Friday's close, as offshore investors cut their holdings of local stocks, dealers
said.
Bond prices, which move inversely to yields, closed lower. The return on
three-year Treasuries gained 0.02 percentage point to 4.45 percent and the
benchmark yield on five-year government bonds rose 0.01 percentage point to end
at 4.81 percent.
sooyeon@yna.co.kr
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