Seoul shares end 0.66 pct lower on bank, shipbuilder falls

SEOUL, Oct. 13 (Yonhap) -- South Korean stocks closed 0.66 percent lower Tuesday
as investors unloaded shares of banks and shipbuilders, analysts said. The local
currency rose against the U.S. dollar.

After volatile trading, the benchmark Korea Composite Stock Price Index (KOSPI)
shed 10.88 points to 1,628.93. Volume was moderate at 408.6 million shares worth
5.31 trillion won (US$4.54 billion), with losers outpacing gainers 510 to 259.
"With a lack of strong upward momentum, the local bourse traded weaker throughout
the session," said Park Seung-jin, an analyst at Samsung Securities Co. "Although
there is caution ahead of the third-quarter earnings season, the Seoul market has
recently made sharp gains, prompting investors to pause."
The KOSPI slid as much as 1.55 percent in the morning session, weighed down by
institutional and foreign sell-offs. But the stock index trimmed earlier losses
as tech stocks extended gains. Foreign investors returned to net buyers of local
stocks in late trading.
Analysts said the firing of five short-range missiles by North Korea had little
impact on the Seoul market as players are already accustomed to geopolitical
risks. The communist country launched the missiles from its east coast on Monday,
in what analysts say appears to be aimed at raising stakes ahead of looming talks
with the United States.
Financial shares and shipbuilders led the market's fall. Bank shares traded in
negative territory amid caution ahead of an earnings announcement by key U.S.
banks. No. 2 financial services company Shinhan Financial Group declined 1.04
percent to 47,450 won and its rival KB Financial Group dipped 0.33 percent to
60,100 won.
Shipbuilders lost ground on concerns over gloomy earnings outlooks. Top
shipbuilder Hyundai Heavy Industries declined 1.66 percent to 178,000 won and its
rival Daewoo Shipbuilding & Marine Engineering fell 3.37 percent to 17,200 won.
STX Corp. tumbled 10.74 percent to 18,700 won on its plan for share offerings.
The company said Monday it plans to raise 162.5 billion won in share sales to
beef up its capital buffer.
Tech stocks came under the spotlight of institutional and foreign buyers. Market
bellwether Samsung Electronics advanced 1.07 percent to 757,000 won and chip
giant Hynix Semiconductor rose 3 percent to 20,600 won.
The local currency ended at 1,168.8 won against the greenback, up 1.2 won from
Monday's close, as offshore investors unloaded the greenback, dealers said.
sooyeon@yna.co.kr
(END)