(LEAD) Seoul shares snap 3-day rise over renewed rate concerns

(ATTN: ADDS more details in 2nd para, photo, bond yields at bottom)

SEOUL, March 24 (Yonhap) -- South Korean stocks closed lower to end their three-day winning streak Friday as market sentiment was down on concerns about rate increases, following the latest rake hikes by the U.S. Federal Reserve and the Bank of England. The local currency fell against the U.S. dollar.

The benchmark Korea Composite Stock Price Index shed 9.52 points, or 0.39 percent, to close at 2,414.96.The index gained 0.97 percent in the past five days.

Trading volume was moderate at 452.04 million shares worth 8.86 trillion won (US$6.85 billion), with gainers outpacing decliners 464 to 393.

Institutions offloaded a net 231.9 billion won worth of shares, while foreigners and retail investors bought a net 45.8 billion won and 180.9 billion won worth of shares, respectively.

Overnight, Wall Street ended higher as traders placed their bets on the Fed possibly winding down its aggressive monetary tightening soon amid recession woes and banking turmoil.

The Fed on Wednesday raised its key rate by a quarter-point in its ninth consecutive rate hike in the span of a year to fight inflation. The Bank of England on Thursday followed suit.

In Seoul, most big-cap shares finished lower amid heightened market uncertainty stemming from the Fed's future path of interest rates.

Market bellwether Samsung Electronics gained 1.12 percent to close at 63,000 won, and LG Electronics added 1.07 percent to 113,000 won.

But most other big-cap stocks lost ground, with chipmaker SK hynix shedding 1.36 percent to 87,300 won and leading battery maker LG Energy Solution declining 1.04 percent to 569,000 won. Samsung SDI went down 3.62 percent to 719,000 won, and LG Chem dropped 3.09 percent to 690,000 won.

Carmakers also ended down, with top automaker Hyundai Motor inching down 1.55 percent to 177,700 won, and its affiliate Kia falling 1.02 percent to 77,600 won.

Major bio shares finished lower as well. Samsung Biologics lost 0.13 percent to 797,000 won, and Celltrion tumbled 0.58 percent to 153,600 won.

The local currency ended at 1,294.3 won against the U.S. dollar, down 16 won from the previous session's close.

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys lost 4.6 basis points to 3.160 percent, and the return on the benchmark five-year government bond fell 2.7 basis points to 3.159 percent.

jaeyeon.woo@yna.co.kr
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