Seoul shares finish lower on Deutsche Bank fears

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,409.22 points on Monday, down 0.24 percent, or 5.74 points, from the previous trading day. [NEWS1]

Seoul shares ended lower Monday as signs of trouble at the major European lender Deutsche Bank renewed concerns over the health of the global financial system. The won fell against the dollar.

The benchmark Kospi dropped 5.74 points, or 0.24 percent, to close at 2,409.22. Trading volume was moderate at 465.77 million shares worth 8.4 trillion won ($6.5 billion), with decliners outpacing gainers 555 to 313.

Investors remain concerned over the risk of a recession amid the banking crisis triggered by the collapse of the U.S.-based Silicon Valley Bank.

In addition, Deutsche Bank's tumbling stocks are adding to traders' woes. The German lender's stocks plunged Friday as the cost to insure against a default in its debt spiked.

"Local stocks ended in negative territory as investors sought safe havens away from risky assets. They are now closely watching on what the U.S. Federal Reserve will do with interest rates going forward following the recent turmoil in the banking sector," Kim Dae-wook, an analyst at Hana Securities, said.

Foreigners sold a net 104 billion won worth of stocks, offsetting institutions and individuals' stock purchases valued at 114 billion won.

In Seoul, most large-cap shares declined across the board.

Samsung Electronics fell 1.4 percent to 62,100 won, and chipmaker SK hynix declined 2.1 percent to 85,500 won.

Carmaker Hyundai Motor dropped 0.9 percent to 176,100 won, and national flag carrier Korean Air shed 1.1 percent to 22,550 won.

Naver sank 1.58 percent to 199,300 won, and Kakao dived 1.14 percent to 60,700 won.

Among gainers, the state-run Korea Electric Power Corporation rose 2.5 percent to 18,380 won, and refiner SK Innovation jumped 4.5 percent to 166,800 won.

The local currency ended at 1,301.5 won against the dollar, up 7.2 won from the previous session's close.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds rose 6.3 basis points to 3.218 percent, and the yield on the benchmark 10-year government bonds shed 4.6 basis points to 3.374 percent.

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