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Dumping of chip shares drags Kospi down

Dec 27,2017
Korean stocks closed lower Tuesday due to weakness of shares of major chipmakers, analysts said.

The benchmark Kospi closed at 2,427.34, down 13.2 points, or 0.54 percent from the previous session.

Trade volume was slim at 221.9 million shares worth 5.57 trillion won ($5.17 billion), with gainers beating losers 459 to 364. The market was closed Monday for Christmas.

Analysts said Seoul shares closed lower since tech shares lost ground as investors took a wait-and-see stance on local chipmakers.

“Tech shares in the Chinese stock market lost ground on rising concerns over the sales of the iPhone X,” said Seo Sang-young, a researcher at Kiwoom Securities. That weighed down investors’ appetite for chipmaker shares here as well.

Foreigners scooped up a net 24.6 billion won, while individuals offloaded a net 893 billion won. Institutional investors bought more shares than they sold at 868.2 billion won.

Market behemoth Samsung Electronics lost 3.02 percent at 2,410,000 won, and No. 2 chipmaker SK Hynix lost 3.52 percent at 74,000 won. Samsung SDI edged down 3.7 percent at 195,000 won, and LG Electronics shed 0.8 percent at 99,200 won.

Chemical shares had a mixed day, with LG Chem moving down 0.38 percent to 392,000 won, while LG Household & Health Care increased 0.34 percent to 1,182,000 won. AmorePacific shed 0.33 percent to 298,000 won.

Steelmakers were winners. Industry leader Posco moved up 0.74 percent at 339,500 won and Korea Zinc advanced 1.35 percent at 489,500 won.

Top mobile carrier SK Telecom added 1.46 percent at 278,000 won, and rival KT also gained 0.48 percent at 31,200 won. LG U+ was up 0.35 percent at 14,450 won.

The secondary Kosdaq added 1.01 points, or 0.13 percent from Friday, to 762.21.

Retailers sold off a large amount of shares, causing semiconductor and IT shares to slide on Tuesday.

The local currency closed at 1,079.10 won against the U.S. dollar, up 3.6 won from the previous session.

Celltrion retreated 3.42 percent to 195,000 won, as opposed to affiliate Celltrion Healthcare, which jumped 4.39 percent to 100,100 won. Sillajen lost 2.47 percent to 79,000 won. CJ E&M added 0.84 percent to 96,200 won.

Bond prices, which move inversely to yields, ended higher. The yield on three-year government funds remained unchanged at 2.13 percent, while the return on 10-year government bonds shed one basis point to end at 2.49 percent.

BY SONG KYOUNG-SON, YONHAP [song.kyoungson@joongang.co.kr]