(LEAD) Seoul stocks close lower on bio losses

(ATTN: ADDS bond yields at bottom)

SEOUL, Nov. 12 (Yonhap) -- South Korean stocks closed lower Monday as individual buyers went on a heavy selling spree targeting large-cap bio shares. The South Korean won lost ground against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) surrendered 5.65 points, or 0.27 percent, to close at 2,080.44. Trading volume was moderate at 291 million shares worth 5.4 trillion won (US$4.7 billion), with losers outnumbering gainers 506 to 325.

Individual investors offloaded a net 114.4 billion won worth of shares on the main exchange, while foreign and institutional investors scooped up a net 38.6 billion won and 66.7 billion won, respectively.

"The loss is apparently affected by earnings shock by Celltrion and controversies surrounding Samsung Biologics' accounting issue," said Lee Kyoung-min, an analyst at Daishin Securities.

The Seoul index opened lower, tracking losses on Wall Street. U.S. stocks declined on Friday as investors digested the latest Federal Reserve decision, with the Dow Jones industrial average dropping 0.77 percent and the broad-based S&P 500 decreasing 0.92 percent. The tech-rich Nasdaq Composite Index tumbled 1.65 percent.

Most large-cap shares ended mixed, with bio stocks pulling down the KOSPI.

Samsung BioLogics, a biopharmaceutical affiliate of Samsung Group, tumbled 22.42 percent to end at 285,500 won ahead of an announcement by South Korea's financial regulator over the company's suspected violation of accounting rules.

The Financial Services Commission is looking into whether Samsung BioLogics violated accounting rules by changing the method used to calculate the value of Samsung Bioepis.

Shares of leading biosimilar manufacturer Celltrion also plunged 11.98 percent at 27,500 won on news of the company's poor earnings for the third-quarter. The company announced on Friday that its third-quarter net profit plunged 49 percent from a year earlier due to price cuts and reduced output.

Tech shares closed higher, meanwhile, with top cap Samsung Electronics gaining 2.03 percent to end at 45,200 won to continue a four-day winning streak. Chipmaker SK hynix was up 2.19 percent to 74,500 won.

The South Korean currency closed at 1,133.9 won against the U.S. dollar, down 5.6 won from the previous trading session.

Bond prices, which move inversely to yields, ended higher. The yield on three-year Treasurys lost 1.5 basis points to 1.945 percent, and the return on benchmark five-year government bonds shed 2.4 basis points to 2.045 percent.

khj@yna.co.kr
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