Seoul shares end 0.05 pct lower on tech, auto falls

(ATTN: ADDS bond yields at bottom)
SEOUL, Nov. 13 (Yonhap) -- South Korean stocks closed 0.05 percent lower Friday
as losses in tech and automaker shares outweighed gains by steelmakers, analysts
said. The local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) shed 0.74 point to
1,571.99. Volume was moderate at 253.7 million shares worth 4.1 trillion won
(US$3.5 billion) with losers outpacing gainers 462 to 325.
"There is fresh momentum for an upward movement. Steelmakers gained ground on
expectations that local steel companies may benefit from the Chinese currency's
strength, but overall sentiment in the market was downbeat," said Bae Sung-young,
an analyst at Hyundai Securities.
Bae said investors will likely look into a set of U.S. economic data due next
week to gauge the pace of the global economic recovery.
The KOSPI got off to a strong start, but the index later reversed course, dipping
as much as 0.69 percent at one point in the morning session on a selling spree by
foreign investors. They sold a net 113 billion won worth of local stocks on the
main bourse.
Market leader Samsung Electronics declined 0.83 percent to 714,000 won and chip
giant Hynix Semiconductor tumbled 3.83 percent to 18,850 won after Hyosung said
the previous day that it will withdraw its offer to buy the chipmaker.
Automakers lost ground. Top carmaker Hyundai Motor shed 0.98 percent to 101,000
won and its affiliate Kia Motors fell 2.26 percent to 17,300 won.
But steelmakers and bank shares traded in positive territory. Top steelmaker
POSCO advanced 1.88 percent to 543,000 won and leading financial services company
KB Financial Group rose 2.94 percent to 59,500 won.
The local currency ended at 1,160.3 won against the greenback, down 3 won from
Thursday's close, as offshore investors cut their holdings of local stocks,
dealers said.
Bond prices, which move inversely to yields, closed higher. The return on
three-year Treasuries declined 0.07 percentage point to 4.27 percent and the
benchmark yield on five-year government bonds lost 0.01 percentage point to 4.84
percent.
sooyeon@yna.co.kr
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