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Lower oil prices help send index down

Feb 28,2017
Seoul’s main bourse fell on Monday, largely affected by falling crude oil prices and foreign investors selling local shares.

The benchmark Kospi shed 8.6 points, or 0.41 percent to close at 2,085.52.

“The Korean stock market is forecast to take a wait-and-see stance following losses on Friday as the market will be closed on Wednesday and ahead of announcements of the manufacturing index by the United States and China,” said Seo Sang-young, an analyst at Kiwoom Securities.

Foreigners and retail investors dumped shares worth 225.6 billion won ($199.4 million) and 33 billion won each, contributing to the decline. In particular, foreign investors offloaded electricity and electronics shares worth 209 billion won. They went on a selling spree, targeting major tech stocks, a move seen as basking in recent gains, the analyst said.

Institutional investors, however, scooped up 217.8 billion won in stocks.

By sector, banking lost 3 percent while IT software retreated 2.6 percent.

Market bellwether Samsung Electronics inched down 0.42 percent, or 8,000 won, to 1,903,000 won. Chipmaker SK Hynix fell 3.16 percent to 46,000 won as portal giant Naver inched down 0.87 percent to 796,000 won and cosmetics company AmorePacific shed 0.49 percent to close at 306,000 won. Auto parts maker Hyundai Mobis lost 0.19 percent to 259,000 won.

Hyundai Motor, on the other hand, rose 0.34 percent to close at 148,500 won. Its sister company Kia Motors inched up 0.39 percent to 38,250 won. Korea Electric Power Corporation rose 1.26 percent to 44,100 won. SK Innovation added 0.33 percent to 153,500 won.

The secondary Kosdaq fell for the fourth straight trading day, shedding 2.63 points, or 0.43 percent, to close at 612.12.

CJ E&M, CJ’s entertainment unit, plummeted 7.56 percent to 75,800 won before the initial public offering of Netmarble, an online game company in which CJ E&M holds the majority of shares.

The local currency closed at 1,133.70 won against the greenback, falling 2.20 won from the previous session’s close.

The yield on three-year and 10-year Treasurys remained fixed at 1.66 percent and 2.17 percent each.

BY CHOI HYUNG-JO, YONHAP [choi.hyungjo@joongang.co.kr]