SEOUL– Seoul stocks closed lower Tuesday as investors took to the sidelines amid woes over China’s stricter virus restrictions. The Korean won declined against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) inched down 14.23 points, or 0.59 percent, to close at 2,405.27.

Trading volume was moderate at 531.5 million shares worth 7.1 trillion won (US$ 5.2 billion) with losers outnumbering gainers 483 to 371.

Foreigners and institutional investors sold a net 37.6 billion won worth of shares, while retail investors bought a combined 25.7 billion won.

“The KOSPI was faced with strong downward pressure while being void of favorable factors to provide upward momentum,” analyst Lee Kyoung-min from Daishin Securities said.

He added investors were on the alert ahead of the release of the Fed’s policy meeting minutes due this week, as well as the worsening COVID-19 situation in China.

In Seoul, most large-cap shares traded lower.

Market bellwether Samsung Electronics edged down 1.3 percent to 60,600 won, and smaller rival SK hynix slid 1.27 percent to 85,200 won.

Auto shares lost ground. Top carmaker Hyundai Motor dipped 1.49 percent to 165,500 won, sister affiliate Kia stayed flat at 65,200 won and car part maker Hyundai Mobis retreated 2.32 percent to won.

Among gainers, Meritz Financial Holdings rallied by the daily permissible limit of 30 percent to 34,750 won, after the company announced it will merge with its securities and insurance arms. The two firms will be delisted from the KOSPI after the combination, the company said in a regulatory filing.

The local currency closed at 1,356.6 won against the U.S. dollar, down 1.9 won compared with the previous session’s close.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year Treasurys rose 0.7 basis point to 3.844 percent, and the return on the benchmark five-year government bond declined 0.9 basis point to 3.854 percent.

Source: Yonhap News Agency