Seoul stocks close 0.1 pct lower

(ATTN: ADDS bond yield at bottom)
By Kim Young-gyo
SEOUL, June 8 (Yonhap) -- South Korean shares closed 0.1 percent lower Monday,
pulled down by institutional selling, analysts said. The local currency fell
against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) dropped 1.41 points to
1,393.30. Volume was heavy at 508.08 million shares worth 5.33 trillion won
(US$4.26 billion), with losers outpacing gainers 424 to 375.
"Massive institutional selling sent the key index downward as there were mixed
expectations over market stability," said Hwang Bin-ah, an analyst at Kyobo
Securities.
"Market volatility increased amid heightened geopolitical tension surrounding
North Korea."
The Seoul stock index got off to a strong start with foreigners being net buyers.
But in late trading, the index reversed earlier gains on the news that North
Korea sentenced two U.S. journalists, who have been detained since March after
being captured on the border with China, to 12 years in a labor camp.
Institutional investors reduced holdings as they scrambled to lock in profits.
Foreigners were net buyers for the second day.
Large-cap shares tumbled across the board. The country's No. 1 builder, Samsung
Construction & Trading, fell 0.80 percent to 43,600, while top automaker Hyundai
Motor lost 4.44 percent to 68,900 won.
Banks also lost ground. Woori Finance Holdings, the parent of Woori Bank, lost
2.35 percent to 10,400 won and KB Financial Group, which controls top lender
Kookmin Bank, shed 2.67 percent to end at 40,150 won.
The local currency finished at 1,252.4 won to the dollar, down 9.4 won from
Friday's close, dealers said.
Bond prices, which move inversely to yields, ended lower. The return on
three-year Treasuries rose 0.15 percentage point to 4.02 percent, and the
benchmark yield on five-year government bonds gained 0.15 at 4.75 percent.
ygkim@yna.co.kr
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