South Korea stocks slide as institutional sell-off weighs

SEOUL: Round-up of South Korean financial markets:

South Korean shares fell on Tuesday, as a sell-off from institutional investors offset recovery optimism on another batch of strong US economic data. The Korean won strengthened, while the benchmark bond yield dropped.

The benchmark KOSPI was down 8.03 points, or 0.26%, at 3,112.80 by 0218 GMT, after rising as much as 0.59% in early session. It closed 0.26% higher on Monday.

Chip heavyweights Samsung Electronics and SK Hynix fell as much as 0.35% and 1.05%, respectively, while battery maker LG Chem dropped 1.84%.

Giant steelmaker POSCO dropped 2.69%, following a report that the company has begun reviewing how it might end a joint venture with a firm controlled by the military in Myanmar in the wake of the coup.

That dented the sentiment, which was buoyed after a survey showed activity in the US services industry reached its highest level on record in March. The recovery momentum lifted the S&P 500 and Dow indexes overnight to their records.

Meanwhile, LG Electronics shares gained 3.88% a day after the company said it will wind down its loss-making mobile division, as investors expect the announcement will raise corporate value.

Foreigners were net buyers of 250.3 billion won ($222.61 million) worth of shares on the main board, while institutional investors sold net 270.8 billion won shares.

The won was quoted at 1,124.6 per dollar on the onshore settlement platform, 0.28% higher than its previous close at 1,127.7.

In offshore trading, the won was quoted at 1,124.5 per dollar, unchanged from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,123.9.

The most liquid 3-year Korean treasury bond yield fell by 2.1 basis points to 1.181%, while the benchmark 10-year yield dropped 2.4 basis points to 2.070%.