South Korean shares fell to a three-week closing low on Thursday as foreign investors dumped local futures contracts, with sentiment dashed by the latest data that raised questions about the strength of US economic growth. The Korea Composite Stock Price Index (KOSPI) ended down 0.85 percent at 2,014.41 points.
"The basis gap narrowed as offshore players dumped futures contracts, triggering selloffs in the spot market as well," said Hyundai Securities analyst Moon Joo-hyun. Program selling weighed, with 194.4 billion won ($171.2 million) worth of shares offloaded via arbitrage trading. Shipbuilders posted sharp falls, with STX Offshore & Shipbuilding Co Ltd tumbling 5.9 percent and Samsung Heavy Industries Co Ltd down 5 percent. Brokerages also weighed after the passing of the ex-dividend date for quarterly payouts. Daishin Securities Co Ltd plunged 6.5 percent, while Hyundai Securities Co Ltd declined 5 percent.
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