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Seoul shares down 0.6 pct weighed on banks, techs
Reuters - Thursday, August 27
* KOSPI declines, down 0.56 pct as institutions sell
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* Banks, memory chip issues weigh on broader market
* Hyundai Heavy gains on Kuwait order news
By Jungyoun Park
SEOUL, Aug 27 - Seoul shares fell on Thursday after gains in the previous session lifted the main index to a 13-month high, with losses by financials such as Shinhan Financial Group <055550.KS> weighing on markets, but Hyundai Heavy rose on order news.
The Korea Composite Stock Price Index <.KS11> was down 0.56 percent at 1,605.16 points as of 0126 GMT.
"Shares are coming under pressure as we are seeing a wave of heavier fund redemption, which are prompting institutions to sell," said Y.S. Rhoo, a market analyst at Hyundai Securities.
Domestic institutions were sellers of a net 64 billion won worth of stocks, while foreign investors bought a net 57.5 billion won.
"Earnings momentum for key listed companies, in the technology and auto sectors, is healthy, but they have risen a lot and are under valuation pressure," Rhoo added.
Market participants have also turned more cautious ahead key U.S. economic data next week, according to Kim Young-june, a market analyst at SK Securities.
But Bank of Korea data early on Thursday showed that South Korean manufacturers' assessment of the business outlook for September rose for a sixth consecutive month to a near two-year high, helping sentiment. [ID:nSEO140411]
A weaker won <KRW=> and losses in their U.S. peers overnight sent South Korean financial issues lower. Hana Financial Group <086790.KS> was down 3.18 percent and Shinhan Financial Group <055550.KS> down 2.83 percent.
However, thermometer maker InnoChips Technology <080420.KQ> spiked 15 percent after South Korea's Ministry of Education, Science and Technology said on Thursday it had enforced temperature checkups on pupils at schools nationwide to stem the spread of H1N1 influenza among students.
Hyundai Heavy Industries <009540.KS> rose 2.78 percent after a local media report on Thursday that a consortium of the South Korean shipbuilder and General Electric <GE.N> of the United States had won a $2.6 billion deal to build a gas power plant in Kuwait.
Memory chipmakers including Samsung Electronics <005930.KS> and Hynix Semiconductor <000660.KS> declined after key DRAM chip spot prices declined overnight.
Samsung Electronics, the world's No.1 memory chip maker, was down 1.16 percent and Hynix, the world's No.2, retreated 0.24 percent.
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