(LEAD) Seoul shares end 0.46 pct lower on institutional sell-offs

(ATTN: ADDS bond yields at bottom)
By Kim Soo-yeon
SEOUL, Oct. 27 (Yonhap) -- South Korean stocks closed 0.46 percent lower Tuesday
as institutional investors dumped tech and bank shares following overnight falls
in U.S. markets, analysts said.

The local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) fell 7.58 points to
1,649.53. Volume was moderate at 321.7 million shares worth 4.99 trillion won
(US$ 4.22 billion) with losers outpacing gainers 548 to 256.
"Institutional sell-offs weighed on the market, but the key index trimmed losses,
aided by foreign buying," said Lee Sun-yup, an analyst at Shinhan Investment
Corp.
Tracking overnight falls in U.S. markets, the KOSPI traded in negative territory,
falling as much as 1.2 percent at one point. But the Seoul bourse cut earlier
losses as foreign investors' buying gave some relief to the market, analysts
said.
Bank shares lost ground ahead of the announcement of their third-quarter earnings
results. No. 3 financial services company Shinhan Financial Group declined 0.41
percent to 48,350 won and Korea Exchange Bank lost 1.37 percent to 14,450 won.
Most tech blue chips traded in negative territory. Market leader Samsung
Electronics fell 1.46 percent to 742,000 won and chip giant Hynix Semiconductor
shed 2.92 percent to 18,300 won. But consumer electronics bellwether LG
Electronics jumped 3.51 percent to 118,000 won.
LG Innotek, an electronics parts unit of LG Group, tumbled 8.37 percent to
115,000 won on concerns over its dimmer outlook for the fourth-quarter earnings.
But automakers gained ground, helped by their strong third-quarter bottom line.
Top carmaker Hyundai Motor advanced 2.63 percent to 117,000 won and its affiliate
Kia Motors rose 2.14 percent to 19,050 won.
Wall Street declined on Monday after a stronger U.S. dollar pressured commodities
stocks including energy firms. The Down Jones industrial average fell 1.05
percent and the tech-laden Nasdaq shed 0.59 percent.
The local currency ended at 1,184.4 won against the greenback, down 6.8 won from
Monday's close, as offshore investors snapped up the greenback, dealers said.
Bond prices, which move inversely to yields, closed higher. The return on
three-year Treasuries declined 0.08 percentage point to 4.54 percent and the
benchmark yield on five-year government bonds fell 0.09 percentage point to 5.01
percent.
sooyeon@yna.co.kr
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