Seoul shares ended 0.4 percent lower on Monday as gains in construction issues and shipyards were outweighed by declines in steelmakers and crude refiners including POSCO and SK Innovation. The Korea Composite Stock Price Index (KOSPI) ended down 0.39 percent at 2,099.85 points, after earlier hitting an all-time high of 2,118.86 points.
The market was taking a breather after having recently hit a series of new all-time highs in recent sessions, said Samsung Securities market analyst Kim Seong-bong. "Losses in steelmakers and crude refiners amid concerns about potential government moves to rein in inflation and curb steel and oil product prices, weighed especially," Kim added.
Crude refiners dipped, continuing to be pressured after South Korean President Lee Myung-bak was quoted as saying by local media reports last week that investigation into oil product pricing may be necessary due to their impact on consumer prices. Shares in SK Innovation, formerly SK Energy and the country's top crude oil refiner, fell 3.2 percent. Steelmakers also retreated, with POSCO, the world's No 3 steelmaker, down 1.4 percent and Dongkuk Steel losing 3 percent.
POSCO shares were further weighed after Moody's rating agency said it saw pressure on POSCO's A2 rating from its investment. US retail sales climbed 0.6 percent in December, data from the Commerce Department showed. The sixth straight monthly increase showed consumers doing their part to support the recovery. Shares in LG Electronics, the world's No 3 handset maker, rose 1.3 percent.
Samsung Electronics Co Ltd rose 1.7 percent on strong foreign investor appetite for the world's No 1 memory chip maker over an improving outlook, analysts said. "Its memory chip sector is seen turning around as the latest robust gains in the US Philadelphia semiconductor index indicates," said Dongbu Securities senior analyst Lee Min-hee, adding that sales of its smartphones were also helping.
The US Philadelphia semiconductor index advanced nearly 3 percent on Friday. Shares in Asiana Airlines, the country's top air carrier, rose 2.9 percent. Shares in Hana Tour, an on-and-offline tour agency advanced 1.2 percent and Modetour climbed 4.7 percent. The KOSPI 200 March futures index fell 0.3 points to 277.70 points. The KOSPI 200 spot index lost 1.12 points to 277.05. The junior Kosdaq index shed 0.41 percent to 533.01.