South Korean shares closed down Monday as unfavorable reports from foreign markets shrank investor sentiment in the local markets, local analysts said.
The benchmark Korea Composite Stock Price Index (KOSPI) dipped 20.35 points, or 1.17 percent, to end at 1,721.21, according to the bourse operator Korea Exchange (KRX).
Following the report that the People's Bank of China (PBOC) decided to raise the deposit reserve requirement ratio for financial institutions by half a percentage point, South Korea's main bourse saw a plunge as investors worried further steps to tighten monetary policies.
In addition, continued worries in the U.S. market on Goldman Sachs weighed on the South Korean market, further pulling down the index, according to analysts.
During the session, foreigners and institutions made a net sell- off, with only retail investors turning net buyers.
While the machinery sector saw the greatest decline of 2.24 percent, electronics and steel shares also plummeted 2.24 percent and 1.78 percent, respectively, on foreign selling.
Among large-cap shares, Samsung Electronics and POSCO led the market downturn with a fall of 2.36 percent and 2.20 percent respectively.
KB Financial and SK Telecom, however, inched up 0.37 percent and 0.87 percent, respectively.
The junior bourse KOSDAQ joined the KOSPI, going down 3.97 points, or 0.76 percent, ending trading at 519.78, said the KRX.
The derivatives moved along with the main bourse, with the KOSPI 200 Futures market shedding 3.95 points, or 1.73 percent, to close at 224.85, according to the bourse operator.
The local currency lost ground against one U.S. dollar, falling 10.20 won from the previous session to hit 1,118.60 won.
Bond prices ended lower with the yield on three-year Treasury notes moving up 0.09 percentage point to 3.70 percent.
The benchmark Korea Composite Stock Price Index (KOSPI) dipped 20.35 points, or 1.17 percent, to end at 1,721.21, according to the bourse operator Korea Exchange (KRX).
Following the report that the People's Bank of China (PBOC) decided to raise the deposit reserve requirement ratio for financial institutions by half a percentage point, South Korea's main bourse saw a plunge as investors worried further steps to tighten monetary policies.
In addition, continued worries in the U.S. market on Goldman Sachs weighed on the South Korean market, further pulling down the index, according to analysts.
During the session, foreigners and institutions made a net sell- off, with only retail investors turning net buyers.
While the machinery sector saw the greatest decline of 2.24 percent, electronics and steel shares also plummeted 2.24 percent and 1.78 percent, respectively, on foreign selling.
Among large-cap shares, Samsung Electronics and POSCO led the market downturn with a fall of 2.36 percent and 2.20 percent respectively.
KB Financial and SK Telecom, however, inched up 0.37 percent and 0.87 percent, respectively.
The junior bourse KOSDAQ joined the KOSPI, going down 3.97 points, or 0.76 percent, ending trading at 519.78, said the KRX.
The derivatives moved along with the main bourse, with the KOSPI 200 Futures market shedding 3.95 points, or 1.73 percent, to close at 224.85, according to the bourse operator.
The local currency lost ground against one U.S. dollar, falling 10.20 won from the previous session to hit 1,118.60 won.
Bond prices ended lower with the yield on three-year Treasury notes moving up 0.09 percentage point to 3.70 percent.
