S. Korean shares fall on worries about earnings

South Korean shares started the first day of this week in negative territory Monday as investors reduced stock holdings on worries about third-quarter earnings especially for chemical companies.

The benchmark Korea Composite Stock Price Index (KOSPI) fell 5. 04 points, or 0.25 percent, to close at 2,026.60. Trading volume stood at 334.74 million shares worth 4.38 trillion won (4.16 billion U.S. dollars).

Concerns remained over the South Korean currency's appreciation to the Japanese yen, which could hurt earnings of local exporters who are competing with Japanese rivals in global markets.

Finance Minister Choi Kyung-hwan said earlier in the day that the government needs to "closely monitor" external risks such as the yen's depreciation to the South Korean currency.

The local currency depreciated after Choi remarks. The South Korean currency finished at 1,053.8 won against the greenback, down 9.4 won from Friday's close.

Foreigners bought shares worth 54.8 billion won, turning into net buyers for the first time in seven sessions, but institutional and retail investors sold shares worth 60 billion won and 11.4 billion won respectively.

Chemical firms led the stock decline. Leading chemical firm LG Chem tumbled 4.9 percent, and its smaller rivals Lotte Chemical and Hanhwa Chemical plunged more than 6 percent.

Other large-cap shares gained ground. Market bellwether Samsung Electronics climbed 0.8 percent, keeping its upward trend for three sessions in a row. Top mobile operator SK Telecom advanced 2. 2 percent, but the biggest steelmaker POSCO dropped 4.5 percent.

Bond prices ended mixed. Yields on the liquid three-year treasury notes added 0.3 basis points to 2.320 percent, but the return on the benchmark 10-year government bonds lost 1.5 basis points to 2.914 percent.