(LEAD) Seoul shares tumble to 15-month low on massive foreign selling

(ATTN: ADDS bond yields at bottom; CHANGES photo)

SEOUL, Aug. 16 (Yonhap) -- South Korean stocks tumbled nearly one percent to a 15-month low on Thursday due to a foreign selling spree, analysts said. The local currency declined against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) sank 18.11 points, or 0.8 percent, to close at 2,240.8, marking the lowest level in 15 months since May 2 when the index finished at 2,219.67. Trading volume was moderate at 309.4 million shares worth 5.93 trillion won (US$5.25 billion), with decliners beating gainers 501 to 341.

"A strengthening U.S. greenback brings with it weaker emerging market currencies, especially Chinese yuan, and Korean won as well," said Kim Young-hwan, a senior analyst from KB Research. "Foreign investors here are pulling their money out of the Korean market as they want to avoid further foreign exchange losses."

Foreigners offloaded a net 241.8 billion won worth of local shares, recording the largest daily sale since July 6.

The expert also noted that doubt about the future business climate for semiconductors, information technology and auto industries, South Korea's key industrial sectors, weighed heavily on the market.

Top cap Samsung Electronics, the largest chipmaker in the world, sank 1.99 percent to 44,250 won, and its rival SK hynix lost 1.58 percent to 74,700 won.

Naver, the country's No. 1 online portal operator, slid 0.92 percent to finish at 750,000 won, while No. 2 Kakao stayed flat at 127,500 won.

Leading shipbuilder Hyundai Heavy Industries slumped 4.17 percent to 103,500 won, and Samsung Heavy Industries fell 1.5 percent to 6,580 won.

Financial shares also went south, with Shinhan Financial Group dipping 0.81 percent to 42,650 won and Samsung Life Insurance declining 2.24 percent to 91,500 won.

The South Korean currency closed at 1,130.1 won against the U.S. dollar, up 2.2 won from the previous trading session.

Bond prices, which move inversely to yields, ended higher. The yield on three-year Treasurys fell 1.3 basis points to 2.050 percent, and the return on benchmark five-year government bonds dropped 2.0 basis points to 2.268 percent.

brk@yna.co.kr
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