SEOUL, March 15 (Xinhua) -- Seoul shares saw a decline Monday on market speculation of monetary tightening in China and the U.S., local analysts said.
The benchmark Korea Composite Stock Price Index (KOSPI) dropped 13.24 points, or 0.80 percent, to close at 1649.50, the bourse operator Korea Exchange (KRX) said.
After several ups and downs in the morning, the index was driven down by reports that China and the U.S. may introduce monetary tightening policies in the near future.
Due to unfavorable reports from overseas markets, foreigners were back to their net seller position, while institutions and individuals ended their trading as net buyers by a narrow margin.
Financial shares suffered the greatest loss, with securities and banking sector dropping 1.51 percent and 1.36 percent respectively.
While most of the shares listed on the main bourse saw a decline, paper and lumber-related shares inched up 0.38 percent.
Most market giants joined the decline trend, with Samsung Electronics, POSCO and KEPCO shedding 1.29 percent, 1.25 percent and 1.43 percent resectively.
Hynix and Samsung Fire & Marine Insuranc, on the other hand, moved up 1.08 percent and 0.25 percent respectively.
The junior bourse KOSDAQ also dropped 1.69 points, or 0.33 percent, to end at 517.75, said the KRX.
The derivatives markets went in line with spot trading moves, with the KOSPI 200 Futures market shrinking 2.10 points, or 0.96 percent, to close at 216.25, according to the bourse operator.
In the meantime, the local currency continued to lose ground against the U.S. dollar, with the forex rate hitting 1,134.70 won against one U.S. dollar, down 6.40 won from the previous session.
The appreciation of the U.S. dollar, or the depreciation of the South Korean won vice versa, came as market sentiment was relieved over Chinese Premier Wen Jiabao's remarks on Sunday that the yuan will not likely be appreciated, clearly stating it is not undervalued.
Bond yields stood flat as the yield on the benchmark three-year Treasury note fixed at 3.93 percent.
