Seoul shares reversed earlier gains and ended lower on Monday, as weak energy counters failed to track a rebound in their Wall Street peers, offsetting gains in construction and technology issues that are riding on positive earnings expectations. The Korea Composite Stock Price Index (KOSPI) fell 0.38 percent to close at 2,019.19 points.
"Although the KOSPI slightly underperformed other Asian peers today, there's no notable shift in its broad trend. It is still drifting sideways in a series of corrections and technical rebounds in the 2,000-2,050 range in the absence of any market catalysts," said Oh On-su, an analyst at Hyundai Securities. Despite a rebound in resource shares that nudged Wall Street higher on Friday, local peers failed to carry through as they led declines in the broad market on Monday.
POSCO, the world's third largest steelmaker, completed a four-day skid, edging 0.52 percent lower while Hyundai Hysco stumbled 3.42 percent. Offshore investors sold a net 72 billion won ($63.4 million)worth of shares while institutions cashed out on a net 288.3 billion won worth on fund redemptions, the largest single-day net selling session in almost five weeks.
The KOSPI has rallied alongside global equities to start off the year backed by ample liquidity and a positive string of US data, but has since sputtered to a halt in recent session following recurrent worries of sluggish growth in China. The KOSPI 200 index edged 0.2 percent lower while the junior KOSDAQ fell 0.77 percent. Trading was light on Monday with 431.3 million shares exchanging hands on the main bourse, 78 percent of the daily average of 467.8 million shares traded in March. Declining shares outnumbered winners 522 to 296.