Seoul shares end 1.5 pct lower on profit-taking

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SEOUL, May 12 (Yonhap) -- South Korean stocks closed 1.5 percent lower Tuesday as
institutions and foreign investors took profits from recent gains, analysts said.
The local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) lost 11.65 points to
1,403.51. Volume was heavy at 754.8 million shares worth 6.54 trillion won
(US$5.26 billion), with losers outpacing gainers 503 to 309.
"Institutions and foreign investors locked in profits as they were worried that
the market will undergo a correction," said Bae Sung-yeong, an analyst at Hyundai
Investment and Securities. "After the recent sharp rise of the local currency,
foreigners would have to consider foreign exchange profits."
Institutional investors sold a net 77 billion won worth of shares. After seven
days of net buying, foreign investors turned net sellers.
Financial shares closed sharply lower, mirroring losses among their peers in U.S.
markets. KB Financial Group, the holding company of Kookmin Bank, lost 4.68
percent to 43,800 won and its rival Woori Finance Holdings shed 4.74 percent to
11,050 won.
Market leader Samsung Electronics lost 0.36 percent to 561,000 won.
The local currency ended at 1,242.6 won against the dollar, down 4.7 won from
Monday's close, as exporters sold the Korean currency, dealers said.
Bond prices, which move inversely to yields, closed higher. The return on
three-year Treasuries shed 0.10 percentage point to 3.83 percent, and the
benchmark yield on five-year government bonds lost 0.10 percentage point to 4.51
percent.
ygkim@yna.co.kr
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