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(LEAD) Seoul stocks down for 2nd day on dim outlook for chip sector

All News 16:38 June 13, 2019

(ATTN: ADDS more info in 8th para, bond yields at bottom)

SEOUL, June 13 (Yonhap) -- South Korean stocks closed lower on Thursday as market heavyweights such as Samsung Electronics came under heavy selling pressure on the dim outlook for the chipmaking sector. The Korean won lost ground against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) shed 5.6 points, or 0.27 percent, to close at 2,103.15. Trade volume was moderate at 544 million shares worth 5.9 trillion won (US$4.9 billion), with gainers outnumbering losers 532 to 289.

"The gloomy outlook for chipmakers prodded investors to unload Samsung and SK hynix," Seo Sang-young, an analyst at Kiwoom Securities, said.

Foreign investors offloaded a net 166 billion won worth of local stocks, while individuals and institutions scooped up a net 132.1 billion won and 53 billion won, respectively.

Top cap Samsung Electronics moved down 1.91 percent to 43,750 won, and SK hynix, a global chipmaker, lost 3.35 percent to 65,500 won.

Automakers ended mixed. Industry leader Hyundai Motor was unchanged at 141,000 won, while its smaller affiliate Kia Motors lost 2.92 percent to 41,550 won.

In contrast, bio shares closed higher, with Samsung BioLogics, a biopharmaceutical affiliate of Samsung Group, adding 0.33 percent to end at 308,000 won. Major bio firm Celltrion was up 0.99 percent to 204,000 won.

Shares of LG Chem Ltd., South Korea's top chemicals company, also jumped 3.56 percent to end at 349,000 won as it will establish an electric vehicle (EV) battery joint venture with Geely Automobile Holdings Ltd. in China.

The local currency closed at 1,183.1 won against the U.S. dollar, down 0.55 won from the previous session's close.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys added 1.1 basis points to 1.480 percent, and the return on benchmark five-year government bonds was up 1.4 basis points to 1.524 percent.


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