Seoul shares end 0.41 pct lower on institutional sell-offs

(ATTN: ADDS bond yields at bottom)
By Lee Youkyung
SEOUL, Nov. 17 (Yonhap) -- South Korean stocks finished 0.41 percent lower
Tuesday as institutional investors unloaded their holdings, erasing earlier
gains, analysts said. The local currency rose against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) sank 6.49 points to
1,585.98. Volume was thin at 288 million shares worth 4.81 trillion won (US$4.16
billion) with losers leading gainers 475 to 310.
The KOSPI briefly touched the 1,600-level in morning trading as investors were
encouraged by overnight Wall Street gains that resulted from a rebound in U.S.
retail sales in October.
"Investors remained hesitant to initiate bargain-hunting because of the economic
uncertainties," said Hwang Keum-dan, an analyst at Samsung Securities. "Large
caps fell, weighing on the benchmark index."
Tech shares finished lower with Samsung Electronics, the world's largest
flat-screen TV and memory chip maker, declining 0.68 percent to 728,000 won.
Chip giant Hynix Semiconductor tumbled 6.6 percent to 18,400 won on fears that
creditors may sell part of their stake through block sales if no prospective
buyer comes forward.
Leading auto parts maker Hyundai Mobis plunged 5.37 percent to 141,000 won as
foreign investors cut holdings of its shares.
Natural resources companies, however, closed higher as the weakening dollar drove
up global commodity prices. Korea Zinc, the world's second-largest zinc smelter,
rose 3.17 percent to 211,500 won.
The local currency closed at 1,154.1 won to the U.S. dollar, up 0.7 won from
Monday's close, as U.S. stock rallies stoked investor appetite for risky assets,
dealers said.
Bond prices, which move inversely to yields, closed sharply higher. The return on
three-year Treasuries sank 0.05 percentage point to 4.24 percent and the
benchmark yield on five-year government bonds fell 0.08 percentage point to 4.82
percent.
ylee@yna.co.kr
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