SEOUL: South Korean stocks closed down 0.35 percent on Monday as brokerages and pharmaceuticals dropped amid deteriorating investor sentiment over their business conditions, analysts said. The won gained ground against the U.S. dollar.
The benchmark Korea Composite Stock Price Index lost 7.15 points to 2,038.81 after moving in and out of positive terrain. Trading volume was heavy at 534.1 million shares worth 6.24 trillion won ($5.35 billion), with decliners outnumbering gainers 638 to 193.
“Brokerage shares fell across the board as investors got worried that a possible hike in the interest rate could have a negative impact on business down the road,” said Lee Kyung-min, a researcher at Daishin Securities.
KDB Daewoo Securities, the largest in market value among brokerage firms, fell 3.58 percent to 14,800 won. Mirae Asset Securities also plunged 5.22 percent to 42,650 won.
Hanmi Pharm lost 7.05 percent to close at 514,000 won, while Yuhan Corp. also retreated 1.95 percent to 277,000 won.
“Pharmaceutical issues lost ground taking cue from lackluster earnings results recently unveiled in the U.S.,” Lee said.
Tech and chemical shares added to the downward move. Chipmaking giant SK hynix fell 3.37 percent to 37,250 won, and chemicals maker LG Chem shed 2.5 percent to 254,000 won.
Auto shares, however, ended bullish, bolstered by the won’s recent descent against the U.S. dollar, which investors expect will help their export-oriented business down the road.
Market leader Hyundai Motor jumped 4.32 percent to 145,000 won, while its smaller affiliate Kia Motors also rose 4.43 percent to 43,650 won. Auto parts maker Hyundai Mobis ended up 6.2 percent to 214,000 won.
