Stocks drop 0.69% as Credit Suisse mess still a factor

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,379.20 points on Monday, down 0.69 percent, or 16.49 points, from the previous trading day. [YONHAP]

Stocks ended lower Monday, led by big-cap tech losses, on mounting concerns over a global banking crisis despite the takeover of the troubled Credit Suisse. The won fell against the dollar.

The benchmark Kospi shed 16.49 points, or 0.69 percent, to close at 2,379.2. Trading volume was slim at 339.75 million shares worth 5.97 trillion won ($4.55 billion), with gainers outpacing decliners 446 to 426.

The index moved within a tight range before ending markedly lower as investors were worried about the financial soundness of the global financial system following the collapse of U.S. lenders in recent weeks.

"Volatility is expected to continue for some time being due to issues in the banking sector, though any dramatic fall of the index seems unlikely, as it will take time for investors to assess the impact of the results of the upcoming Fed meeting and major nations' data on the manufacturing sector and exports," Kiwoom Securities analyst Han Ji-young said.

In Seoul, tech companies led the downturn of the index.

Samsung Electronics fell 1.79 percent to 60,200 won, and chip maker SK hynix lost 0.36 percent to 83,700 won.

Battery maker LG Energy Solution decreased 1.63 percent to 544,000 won, and Samsung SDI slid 0.83 percent to 715,000 won. LG Chem sank 2.71 percent to 683,000 won.

Hyundai Motor dropped 0.85 percent to 175,100 won and Kia fell 2.74 percent to 78,000 won.

Bio shares gained ground. Samsung Biologics rose 0.5 percent to 812,000 won, and Celltrion rose 0.89 percent to 157,900 won.

Naver surged 1.77 percent to 201,500 won, and Kakao, which runs KakaoTalk, advanced 1.33 percent to 61,000 won.

The local currency ended at 1,310.1 won against the dollar, up 7.9 won from the previous session's close.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds shed 14.7 basis points to 3.269 percent, and the yield on the benchmark 10-year government bonds dropped 15.3 basis points to 3.429 percent.

BY SOHN DONG-JOO, YONHAP [sohn.dongjoo@joongang.co.kr]