Seoul shares ended nearly flat in volatile trade on Monday, with the market pressured by caution amid heightened signs of a global economic slowdown and due to falls in memory chip makers and crude oil refiners. The Korea Composite Stock Price Index ended up 0.1 percent at 2,048.74 points. KOSPI 200 September futures rose 1.6 points to 271.55 points and the KOSPI 200 spot index gained 0.75 points to 269.79. The junior Kosdaq market ended down 1.88 percent at 458.15.
"It comes as worrisome that the KOSPI has fallen below its earlier low hit in late-May and that possibly indicates that more losses are ahead," said Kim Seung-han, a market analyst at HI Investment & Securities. South Korean shares were trading at a price earnings multiple of 9.7, compared with Asia ex-Japan's 12.5, Starmine data showed. South Korea's price-to-book value ratio was 1.4 times, compared with Asia ex-Japan's 2.1.
Foreign investors were sellers of a net 199.5 billion Korean won ($183.96 million) worth of stocks, offloading shares for a third straight session. The world's No 2 memory chip maker Hynix Semiconductor fell 1.3 percent as worries about memory chip outlook deepened after data showed contract prices fell. June contract prices of key DRAM chips fell nearly 3 percent, data by DRAMeXchange, an industry tracker, showed on Monday.
Shares in Hankook Tire tumbled 8.2 percent amid news of faulty tire issues in China. About 240 tires with defects have been recalled before they were sold to customers, Hankook Tire spokeswoman said, adding that there have not been complaints from Chinese customers so far. Crude oil refiners lost ground after news Saudi Arabia would raise output to 10 million barrels a day in July, which sent prices of crude oil lower in US trade on Friday.
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