Seoul: Stocks slide as institutional sell-off outweighs recovery hopes

[SEOUL] South Korean shares closed lower on Monday, as a sell-off from institutional investors outweighed optimism over a stimulus- and vaccine-led recovery.

The Kospi ended 4.97 points, or 0.16 per cent, lower at 3,036.04, after falling as much as 0.51 per cent in earlier trade. It rose 1.09 per cent on Friday.

Among heavyweights, technology giant Samsung Electronics rose 0.12 per cent, while peer SK Hynix fell 2.22 per cent. Battery maker LG Chem and internet giant Naver also dropped 0.37 per cent and 2.87 per cent, respectively.

US President Joe Biden is expected to put some detail on his infrastructure spending plans on Wednesday, while vaccinations that had been given to almost 94 million people in the United States lifted recovery hopes.

Meanwhile, South Korea's exports were seen growing at their sharpest pace in 29 months in March, a Reuters poll showed, with semiconductors and car sales leading the expansion as global demand improved.

But institutional investors sold net US$629.14 million worth of shares on the main board, while foreigners were net buyers of 49.7 billion won ($S178.2 million) worth of shares.

REUTERS