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Seoul stocks end lower on lingering trade war woes

All News 16:00 July 16, 2018

SEOUL, July 16 (Yonhap) -- South Korean stocks ended lower Monday, as investors moved to lock in profits from the previous session's rally while cautiously watching developments in global trade disputes, analysts said. The Korean won fell against the U.S. dollar.

The benchmark Korea Composite Stock Price Index shed 8.91 points, or 0.39 percent, to close at 2,301.99. Trade volume was slim at 293 million shares worth 4.89 trillion won (US$4.33 billion), with losers outnumbering gainers 501 to 319.

The local bourse opened slightly higher, but reversed its course to negative terrain after choppy trading.

Institutions went on a selling spree by dumping 266.4 billion won worth of local stocks, and foreigners also shed a net 45.4 billion won worth of shares, which offset buying by retail investors worth 288.9 billion won of local stocks.

"We need to closely follow how things will go regarding the trade war between the U.S. and China. Some say the worst has passed, but fears are still running high among investors over a full-scale trade war," said Kim Min-soo, an expert at Hana Financial.

"Now under the spotlight are the second-quarter corporate reports, which will cause the market to experience volatility for some time," he added.

Shares of financials traded bearish, as possible impacts of diminishing trade volumes caused by trade rows would worsen prospects for the banking sector. KB Financial Group shed 2.53 percent to 53,900 won, and Woori Bank slid 1.77 percent to 16,650 won.

Tech shares also finished lower. Market kingpin Samsung Electronics fell 0.97 percent to 46,050 won, and LG Electronics decreased 1.55 percent 76,400 won.

Lingering concerns over trade protectionism also brought down steel shares. Market leader POSCO shed 0.47 percent to 315,000 won, and Hyundai Steel retreated 0.82 percent to 48,550 won.

Retail shares suffered out of fears that a 10.9 percent hike in the minimum wage for next year to 8,350 won per hour would hurt their bottom line. GS Retail nosedived 10.7 percent to 34,200 won, and Emart fell 2.04 percent to 216,000 won.

But bio shares rose on investors' bargain hunting. Pharmaceutical giant Celltrion surged 1.91 percent to 293,500 won, and Samsung Biologics soared 1.99 percent to end at 410,000 won.

Auto shares also ended higher, with top carmaker Hyundai Motor jumping 2.86 percent to 126,000 won and its smaller affiliate Kia Motors advancing 1.59 percent to 31,950 won.

The local currency closed at 1,129.20 won against the U.S. dollar, down 5.7 won from Friday's close.

Seoul stocks end lower on lingering trade war woes - 1

graceoh@yna.co.kr
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