(LEAD) Seoul shares close lower for six straight sessions

All News 16:30 October 08, 2018

(ATTN: ADDS bond yields at bottom)

SEOUL, Oct. 8 (Yonhap) -- South Korean stocks extended their losing streak to six sessions on Monday as concerns over a faster pace of U.S. rate rises caused foreigners to remain net sellers. The local currency fell to an eight-week low against the U.S. greenback.

The benchmark Korea Composite Stock Price Index (KOSPI) lost 13.69 points, or 0.6 percent, to close at a seven-week low of 2,253.83. The index has been declining since Sept. 28.

Trading volume was light at 210 million shares worth 4.36 trillion won (US$3.85 billion), with losers far outpacing gainers 586 to 250.

Analysts said that investors became more worried that the U.S. central bank will speed up its monetary tightening next year following recent comments on solid U.S. economy by Fed Chairman Jerome Powell.

"Investors have underestimated the pace of interest rates movement, and they have to change their consensus on the U.S. monetary policy," said Kim Yong-koo from Hana Financial Investment Co. "U.S. bond rates are rising, while investors seek safer assets."

Overseas investors sold a net 176.8 billion won worth of shares on the main exchange, leading the KOSPI decline for more than a week.

Individual investors scooped up a net 137.6 billion won and institutions purchased a net 25.8 billion won.

Financial shares ended weakly as KB Financial Group fell 0.36 percent to 56,000 won and top brokerage house of Mirae Asset Daewoo retreated 1.39 percent to 7,820 won.

Leading carmaker Hyundai Motor sank 2.01 percent to 122,000 won and its sister Kia Motors dropped 0.88 percent to 33,900 won.

Oil refineries were among the losers, with industry leader SK Innovation tumbling 2.9 percent to 217,500 won and No. 3 S-Oil skidding 2.56 percent to 133,000 won.

On the other hand, Samsung Electronics, the largest share on the bourse, gained 0.56 percent to close at 44,950 won and runner-up SK hynix rose 1.28 percent to 71,200 won.

The South Korean currency closed at 1,132.70 won against the U.S. dollar, down 2.3 won from the previous trading session. This is its lowest value since Aug. 13, when it finished at 1,133.90 won.

Bond prices, which move inversely to yields, ended lower. The yield on three-year Treasurys added 0.7 basis point to 2.091 percent, and the return on benchmark five-year government bonds was up 1.7 basis points to 2.286 percent.