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Shares lower on continued trade uncertainties

Jan 09,2019
Korean shares ended lower Tuesday as investors watched closely to see if ongoing U.S.-China trade talks will yield productive results.

The Korean won depreciated against the U.S. dollar.

The benchmark Kospi fell 11.83 points, or 0.58 percent, to 2,025.27.

Trading volume was moderate at 390.7 million shares, worth 4.72 trillion won ($4.2 billion).

Investors remain wary about the Trump administration’s optimism over possibly reaching a “reasonable” trade deal with China. Such concerns weighed on the main index

Institutional investors sold a net 10.8 billion won, and foreign investors sold a net 25.9 billion won worth of shares. Individuals bought a net 36 billion won worth of stocks.

Samsung Electronics fell 1.68 percent to 38,100 won, while SK Hynix rose 0.85 percent to 59,200 won.

On Tuesday, Samsung Electronics came in with a lower-than-expected operating income of 10.8 trillion won in preliminary results for the October-December quarter.

Auto-related shares fell as Hyundai Motor declined 0.83 percent to 119,500 won, and sister company Kia Motors fell 1.17 percent to 33,800 won. Auto-parts maker Hyundai Mobis retreated 2.77 percent to 193,000 won.

Leading steelmaker Posco shed 0.20 percent at 245,500 won.

Ship builders slumped as Hyundai Heavy Industries fell 3.60 percent to 134,000 won and Daewoo Shipbuilding & Marine Engineering tumbled 4.27 percent to 31,400 won.

Bio shares were also among losers in the session as Samsung biopharmaceutical unit Samsung BioLogics fell 0.52 percent to 386,000 won. Pharmaceutical giant Celltrion declined 1.16 percent to 213,500 won.

Dominant tobacco company KT&G rose 1.0 percent to 101,000 won.

Leading refiner SK Innovation climbed 1.72 percent to 177,000 won, while S-Oil dropped 2.91 percent to 93,500 won.

The secondary Kosdaq fell 4.35 points, or 0.65 percent, to end the session at 668.49.

The tech and bio-heavy index was dragged down by foreign and institutional selling of pharmaceutical and IT shares despite a 1.30 percent rise in the U.S. Nasdaq Composite Index overnight. The junior bourse finished in negative terrain after two consecutive sessions of gains.

The Korean won traded at 1,124.10 won against the greenback, up 5.50 won from the previous close.

Bonds, which move inversely to yields, ended lower. The yield on three-year bonds rose 0.3 basis points to 1.81 percent. The 10-years added 1.7 basis points to 1.99 percent.

BY KIM HEYU, YONHAP [kim.heyu@joongang.co.kr]