Kospi closes down for second straight session on profit taking

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,737.57 points on Monday, down 0.40 percent, or 10.99 points, from the previous trading session. [YONHAP]

Stocks declined for the second straight session Monday as investors sought to cash in recent gains. The local currency fell against the U.S. dollar.

The Kospi lost 10.99 points, or 0.4 percent, to close at 2,737.57.

Trade volume was moderate at 479.9 million shares worth 9.78 trillion won ($7.23 billion), with losers outnumbering winners 527 to 336.

Foreigners and institutions led the drop, dumping a combined 331.6 billion won worth of local shares, while individuals scooped up a net 330.3 billion won.

On Thursday, the Kospi hit a nearly two-year high, backed by growing hopes for U.S. rate cuts in the near future.

"Semiconductor, auto and financial shares, which had led last week's rally, lost ground due to profit-taking, but the loss was almost offset by an increase in bio and entertainment shares," said Lee Jae-won, an analyst from Shinhan Securities.

Techs, autos and banking shares led the overall market decline.

Samsung Electronics retreated 0.89 percent to 78,200 won and SK hynix skidded 0.24 percent to 169,400 won.

Hyundai Motor fell 1.64 percent to 239,500 won and Kia declined 1.24 percent to 111,500 won.

KB Financial Group tumbled 3.87 percent to 72,000 won and Hana Financial Group lost 2.19 percent to 62,600 won.

Hyundai Marine & Fire Insurance dropped 1.63 percent to 33,100 won.

However, battery shares were in positive territory, with LG Energy Solution gaining 0.24 percent to 414,500 won and Posco Future M rising 0.63 percent to 320,500 won.

Samsung SDI surged 2.86 percent to 486,000 won.

LG Chem gained 2.45 percent to 460,500 won and SK Innovation rose 0.83 percent to 121,000 won.

Hybe jumped 5.72 percent to 207,000 won, and Celltrion went up 0.37 percent to 188,900 won.

The local currency closed at 1,342.1 won against the greenback, up 3.7 won from the previous session's close.

The Kosdaq gained 9.71 points, or 1.07 percent, to close at 913.69.

Bond prices, which move inversely to yields, declined. The yield on three-year government bonds edged up 0.7 basis points to 3.289 percent, and the return on the benchmark U.S. 10-year government bonds lost 6.3 basis points to 4.198 percent.

BY KIM JI-YE, YONHAP [kim.jiye@joongang.co.kr]