SEOUL, April 25 (Xinhua) -- South Korean shares fell the sharpest in more than a month on Friday, as foreigners betted against the local stock market in a bid to lock in profits caused by the local currency's depreciation against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) sank 26. 68 points, or 1.34 percent, to close at 1,971.66. It was the biggest daily drop since March 12. Trading volume stood at 201.77 million shares worth 3.6 trillion won (3.46 billion U.S. dollars).
Foreigners sold a net 47.5 billion won worth of local stocks, turning into net sellers for the first time in nine sessions. Foreign selling worsened market sentiment, leading to sales worth 169 billion won by institutional investors. Retail investors alone bought stocks worth 198.7 billion won.
Offshore investors reduced holdings of local stocks as the South Korean currency fell against the dollar. Foreigners bought South Korean stocks to earn profits from the stock rise as well as the appreciation of the currency.
The South Korean currency finished at 1,041.5 won against the greenback, down 2.3 won from Thursday's close.
Market bellwether Samsung Electronics slid 0.5 percent to close at 1,400,000 won, and top automaker Hyundai Motor declined 2.3 percent after unveiling worse-than-expected earnings for the first quarter. Among large-cap stocks, losers outnumbered gainers.
Bond prices ended higher. The yield on the liquid three-year treasury notes fell 0.01 percentage point to 2.87 percent, and the return on the benchmark 10-year government bonds lost 0.01 percentage point to 3.53 percent.
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