South Korean stocks closed lower on Monday as institutional investors sold Samsung Electronics and other tech shares. The South Korean won rose against the U.S. dollar.

The benchmark Korea Composite Stock Price Index closed at 1,990.04, down 5.44 points, or 0.27 percent, from Thursday’s close. The market was closed on Friday in observance of Memorial Day.

The trading volume was moderate at 207.2 million shares worth 4.51 trillion won ($4.4 billion), with gainers leading losers 463 to 361.

Gains in tech shares pushed up the index in early morning trading, but institutional selling of shares like Samsung Electronics reduced earlier gains by late morning. In afternoon trading, foreign buying of NAVER, LG Chem and POSCO bolstered the market to limit the loss.

“The main factor pulling down the KOSPI was a drop in Samsung Electronics due to news related to Samsung Group,” said Kang Hyun-gie at I’M Investment & Securities Co.

Samsung shares went into negative territory on news that it would cost too much for the country’s top conglomerate to restructure under a holding company. Investors had hoarded Samsung stocks ever since June 3 when the business group announced its de facto holding firm Samsung Everland would go public by the first quarter of next year, speculating that the group would launch pro-shareholder incentives for smooth regrouping of the affiliates.

Market leader Samsung Electronics fell a whopping 3.29 percent to 1,409,000 won, and Samsung C&T, the group’s trading and construction unit, plunged 7.49 percent to 72,900 won. (Yonhap)