(LEAD) Seoul stocks down on foreign selling, tech losses

(ATTN: ADDS bond yields at bottom)

SEOUL, April 20 (Yonhap) -- South Korea's main bourse ended lower Friday as foreign investors moved to lock in profits from gains made in previous sessions amid a downbeat outlook over the semiconductor market. The Korean won weakened against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) shed 9.77 points, or 0.39 percent, to close at 2,476.33. Trade volume was moderate at 526.13 million shares worth 7.71 trillion won (US$7.22 billion), with gainers outnumbering losers 525 to 300.

After opening lower following Wall Street losses on Thursday, the index continued to trade sideways before drifting further down.

Foreign investors dumped a net 490.6 billion won worth of shares, while institutions and retailers picked up shares worth 158.6 billion won and 345.8 billion won respectively.

"Taiwan Semiconductor Manufacturing reported a disappointing revenue forecast, which caused concerns over a possible slowdown in the sector," Seo Sang-young, an analyst at Kiwoom Securities, said.

"It is one of the major sources of worries for investors given the industry's weight on the overall Korean economy," he added.

Losses occurred across the board, with tech firms and chipmakers leading the decline.

Market bellwether Samsung Electronics tumbled 2.2 percent to 2,581,000 won, and top chipmaker SK hynix retreated 3.98 percent to 34,400 won.

Steelmakers and chemicals also lost ground, with top steelmaker POSCO retreating 1.55 percent to 349,500 won and LG Chem falling 0.93 percent to 327,500 won.

Major bio shares traded mixed amid looming suspicions over its growth potential and experts' warnings over a bubble burst of their shares.

Samsung Biologics, Samsung's health care unit, inched down 0.2 percent to 506,000 won, while Celltrion, a major pharmaceutical firm, added 0.94 percent to 269,000 won on news that its biosimilar drug Truxima won approval for sales in Australia.

Samsung SDS, top conglomerate Samsung's battery-making unit, jumped 5.42 percent to 243,000 won on upbeat earnings prospects and expectations for its value to be heightened in accordance with the group's governance restructuring moves.

Namkwang Engineering & Construction rallied 20.73 percent to hit a record high of 31,450 won thanks to rising hopes for economic cooperation with North Korea. The builder is one of the major construction firms that took part in inter-Korean economic projects in the past, including running a factory in the joint industrial complex of Kaesong.

The local currency closed at 1,067.25 won against the U.S. dollar, down 5.75 won from the previous session's close.

Bond prices, which move inversely to yields, ended lower. The yield on three-year Treasurys grew 0.5 basis point to 2.200 percent, and the return on benchmark five-year government bonds added 1.6 basis points to 2.450 percent.

graceoh@yna.co.kr
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