SEOUL - South Korean share prices closed down 0.66 percent Tuesday in a modest correction led by financials and domestic plays, dealers said.

They added that trading was lacklustre in the absence of a lead from Wall Street, with US markets closed for a holiday Monday.

The KOSPI index closed down 5.41 points at 818.80, just off the low of 817.68, on thin volume of 430 million shares worth 1.6 trillion won (1.4 billion dollars).

Decliners led advancers by 397 to 310, with 96 stocks unchanged.

Foreign investors were net buyers of stocks worth 7.2 billion won, and retail investors net buyers of 3.4 billion won, while institutions were net sellers of 15.1 billion won.

The won was trading at 1,151.3 to the dollar, compared with yesterday’s close of 1,152.9.

Dealers noted that many investors were sidelined ahead of triple witching on Thursday, when index futures, options and stock options expire. They were also awaiting the central bank’s decision on call rates also on Thursday.

"The market will likely move in a tight range around 820 points until Thursday’s triple witching," Hanyang Securities market analyst Hong Soon-Pyo said.

AFP

Hong said Samsung Electronics and selected technology stocks posted gains, helping limit the market’s downside.

"Domestic demand plays experienced some correction, but I believe they will lead the market’s gains going forward," he said.

Banks were mostly lower on profit-taking. Kookmin Bank fell 400 won to 39,150, Shinhan Financial Group fell 500 won to 20,500, and Hana Bank dropped 500 won to 27,300.

LG Investment Securities fell 10 won to 8,320, and Samsung Securities dropped 100 won to 21,600.

Information technology stocks closed mixed. Samsung Electronics rose 500 won to 434,000 on bargain-hunting following recent weakness on sell-offs by foreign investors. Hynix Semiconductor fell 100 won to 9,820.

LG Philips LCD closed down 200 won at 32,900, and Samsung SDI lost 4,000 won to 111,500.

Most other blue chips closed weaker. Hyundai Motor lost 1,300 won to 50,500, and POSCO fell 500 won to 171,000.

Telecom stocks were among the stongest performers after lagging recent market gains. SK Telecom added 3,000 won to 184,500, and KT Corp rose 300 won to 38,700. KTF rose 150 won to 19,500.

Top-tier domestic plays corrected recent gains. Sinsegae, the nation’s largest discount store chain, fell 5,000 won to 311,000, and Hyundai Department Store lost 1,050 won to 35,950.

Amore Pacific, a cosmetics maker, fell 500 won to 239,500, and CJ Corp, the nation’s largest food maker, fell 700 won to 59,000.

Transport stocks corrected. Korean Air closed down 200 won at 17,500, Korea Line closed unchanged at 38,000, and Seyang Shipping fell 15 won to 1,530.

Among builders, Daelim Industrial closed down 600 won at 42,900, and Hyundai Engineering Construction closed flat at 10,100.

bur/lim/mgb

Stocks-SKorea

AFP September 07, 2004 13:09