By Yeawon Choi
SEOUL, Sept 10 (Reuters) - Seoul shares edged down on
Thursday morning on profit-taking after marking the sharpest
gain in nearly four years in the previous session, as risk
appetite contracted after falls in Wall Street overnight.
The Korea Composite Stock Price Index (KOSPI) .KS11 was
down 0.1 percent at 1,932.98 as of 0235 GMT, while gainers
outnumbered losers by 1.2 to 1. The KOSPI ended up 3 percent on
Wednesday, posting the biggest daily percentage rise since Dec.
21, 2011.
"After such a gain, more than 50 points, yesterday, a loss
appears technical," said Kang Hyun-gie, a stock analyst at
Dongbu Securities.
Kang added that after recent corrections, prior leading
gainers - growth stocks such as cosmetics and pharmaceuticals -
are retreating, and investors see undervalued stocks such as
chemicals and shipbuilders leading the broader market's gains,
and are also underpinning the market during the current session.
A so-called quadruple witching day falls on Thursday this
week in Seoul, when stock futures and options as well as index
futures and options, all expire on the same day. Generally,
market volatilities are raised on such a day as investors unwind
positions.
Meanwhile, persistent foreign selling weighed on the main
board as offshore investors were set to extend their selling
into a 26th straight session, offloading a net 37.3 billion
won($31.23 million) of KOSPI shares.
Market heavyweight Samsung Electronics Co Ltd 005930.KS
shed 1.7 percent, and steel maker Posco 005490.KS lost 1
percent.
Mirae Asset Securities Co Ltd 037620.KS plunged 18 percent
after the securities brokerage announced after market close on
Wednesday that it would carry out a 1.2 trillion won ($1
billion) rights issue. ID:nL4N11G084
On the currency market, the South Korean won KRW= fell
against the dollar as market participants preferred less risky
assets following losses in Wall Street.
The won KRW=KFTC was down 0.5 percent at 1,194.8 per
dollar from the previous close of 1,189.4.
"Investors are wary of intervention around 1,200 level by
foreign exchange authorities (to curb the won's sharp fall),and
uncertainty remains ahead of BoK's decision," said Yuna Park, a
foreign-exchange analyst at Dongbu Securities.
The Bank of Korea's monthly monetary policy review is due on
Friday, which is expected to hold rates steady, a Reuters survey
found.
September futures on three-year treasury bonds KTBc1 were
up 0.08 points at 109.64.
0235 GMT Prev close
Dollar/won 1,194.8 1,189.4
Yen/won 9.9211/277 9.8765
*KTB futures 109.64 109.56
KOSPI 1,932.98 1,934.20
* Front-month futures on three-year treasury bonds