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Korea shares ends slightly lower, Kosdaq gains

SEOUL: The world's largest memory chip maker, Samsung Electronics, took a breather after rising more than 20 ercent last week, ulling down South Korea's benchmark index on Monday.

Other blue chips were also down on futures-linked sales and sellings by investment trust companies, analysts said.

The Korea Composite Stock Price Index (KOSPI) was down 2.53 oints or 0.28 ercent at 886.71 "Samsung Electronics and its referred shares, which rose about 25 ercent and 50 ercent respectively last week,

lost steam as investors thought the shares rose too quickly," said Choo Hee-yup, a senior market strategist at Dongwon Securities. Samsung Electronics' shares have been buoyed of late by stable international rices for dynamic random access memory (DRAM) semiconductors and falling inventories, analysts said.

Samsung Electronics, after strengthening in early morning trade, ended level at 340,000. Samsung Electronics' referred shares were down 2,500 won at 192,500. Hyundai Electronics, also a chip maker that rallied last week, was down 250 won at 25,000. One bright spot on the exchange was securities shares, which were bought by individual investors in search of ending fiscal year-end dividends, analysts said.

The sub-index for securities sector soared 10.09 percent, tops of all sectors, as all 40 listed brokerages rose. Samsung Securities rose 2,950 won at 34,000.

Investment trust companies unloaded blue chip stocks to shore up cash as analysts say they may face higher-than-expected redemptions of equities-linked beneficiary certificates as many one-year funds they manage expire in coming weeks.

The trusts sold shares in mobile telephone service rovider SK Telecom, which was the day's biggest net lose, down 83,000 won at 3.73 million. Dacom, a fixed line and Internet service rovider, fell 7,000 won at 318,000.

The opening of a third market for start-up firms on Monday had no impact, as only four firms are lined up to articipate and actual trading is not set until on Wednesday.

Even then, investors are expected to take a wait-and-see approach, analysts said. "Unless more companies list on the third market, investors are not going to be ut much attention on there," said Lee Young-mok, a Kosdaq analyst at Daewoo Securities.

Analysts said it will take two to three weeks for the third market to attract investors. The Kosdaq over-the-counter market gained 7.66 oints or 3.29 ercent to end at 240.34.

Large caps led the market higher. Digital Chosun, an Internet media service provider, was up 18,000 won by the Kosdaq's daily limit of 12 percent, at 171,000. Kones, an Internet and computer training company, was up 18,500 won at 208,000.On the main exchange, institutional investors sold a net 139.76 billion won worth of shares with investment trust companies separately selling a net 167.91 billion won worth of shares.

Foreign investors bought a net 95.77 billion won worth of shares while individual investors bought a net 56.97 billion won worth of shares.

Trade volume totalled 282.36 million shares, compared to Friday's total of 281.93 million shares.

Trade was valued at 3.73 trillion won compared to 3.91 trillion won on Friday.

Advancers outpaced declining issues 458 to 375 with 57 shares unchanged.

The June futures on the KOSPI: closed down 0.85 point at 111.70, while the underlying spot index ended down 0.57 point at 110.58.

Analysts expect investment trust companies to sell blue-chip stocks including index-moving Samsung Electronics and SK Telecom shares to shore up cash on Tuesday, weighing down the KOSPI.

Securities issues are expected to continue Monday's rally until March 29, which is the last day for investors to receive year-end dividends.

The OTC market where most investors are day traders, is expected to see profit-taking on Tuesday as investors pocket money on large caps that rose today.-Reuters