The Korea Herald

피터빈트

Seoul shares down 0.7% in late morning trade

By KH디지털2

Published : Dec. 28, 2015 - 13:37

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South Korean stocks traded 0.69 percent lower late Monday morning as investors took to the sidelines ahead of the ex-dividend day.

The benchmark Korea Composite Stock Price Index retreated 13.83 points to 1,976.82 as of 11:20 a.m.

After starting a tad lower, the market faced downward pressure as foreigners and individuals offloaded risky assets amid a lack of market-moving leads. Their sell-off offset institutions' year-end buying on the eve of the ex-dividend date, or the day when all shares bought and sold no longer come with the right to receive the most recently declared dividend.

Shares of the country's top conglomerate Samsung affiliates dragged down the index on the news that Samsung C&T is required to shed 5 million shares worth 727.5 billion won ($623.7 million) by March 1 next year after the Fair Trade Commission found its merger with Cheil Industries in September strengthened banned cross-shareholding ties within the conglomerate.

Samsung C&T, the group's construction and trading unit, tumbled 2.41 percent, and Cheil Industries, its apparel and resort subsidiary, sank 4.02 percent. Top-cap Samsung Electronics also lost 1.17 percent.

Bucking the trend, however, top automaker Hyundai Motor surged 0.66 percent as investors went hunting for bargains following huge losses in the previous session.

The local currency was changing hands at 1,165.2 won against the greenback as of 11:20 a.m., up 2.6 won from Thursday's close.

The market closed on Friday for Christmas. (Yonhap)