Published : 2013-09-24 16:00
Updated : 2013-09-24 16:00
South Korean stocks closed 0.11 percent lower Tuesday as investor sentiment was dented by uncertainties stemming from the United States over raising its debt ceiling, analysts said. The local currency gained against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) lost 2.31 points to finish at 2007.10. Trading volume was moderate at 297.5 million shares worth 4.16 trillion won (US$3.87 billion) with losers outpacing gainers 461 to 341.
Analysts said Seoul shares closed lower due mainly to the rising financial uncertainties from the U.S. as Democratic and Republican parties are at odds over the country's budget plans and debt-ceiling issue.
U.S. stocks also closed lower Monday as investors took a wait-and-see approach on the government's budget plan, with the Dow Jones industrial average falling 0.32 percent and tech-laden NASDAQ composite index losing 0.25 percent.
"The rising political uncertainties in the U.S. weighed down on foreign investors' sentiment in the local market," said Koh Seung-hee, an analyst at SK Securities Co.
Foreigners purchased more shares than they sold for the 20th consecutive session at a net 71.5 billion won, but lower than 314.2 billion won tallied in the previous trading session. Individuals also bought a net 43.7 billion won, while institutions offloaded a net 99.4 billion won.
Builders closed lower, with Hyundai Engineering & Construction falling 0.31 percent to 64,200 won and Daewoo Engineering & Construction losing 3.69 percent. Daelim Industrial shed 0.99 percent to 100,500 won.
Tech shares closed mixed, with Samsung Electronics rising 0.96 percent to 1,373,000 won and top chipmaker SK hynix losing 0.16 percent. LG Electronics, a local handset maker, climbed 0.55 percent to 72,800 won.
Carmakers also traded mixed, with No. 1 Hyundai Motor closing unchanged at 255,000 won and its smaller affiliate Kia Motors adding 0.59 percent to 68,400 won. Top auto parts maker Hyundai Mobis climbed 0.17 percent to 296,000 won.
Logistics gathered ground, with Hyundai Glovis rising 1.79 percent to 199,500 won and Hyundai Merchant Marine adding 1.1 percent to 18,450 won. CJ Korea Express gained 0.82 percent to 98,800 won.
The local currency ended at 1,072.20 won against the greenback, up 1.60 won from Monday's close following the Federal Reserve's decision to maintain its quantitative easing moves, dealers said. (Yonhap news)