Seoul shares slip from 4-week high as foreigners sell

Mon Feb 17, 2014 9:58pm EST

* Foreigners, institutions dump shares

* Kolon shares take a hit from fatal accident in southern S.Korea

By Christine Kim

SEOUL, Feb 18 (Reuters) - South Korean shares fell early on Tuesday from a near four-week high posted a day earlier as foreign investors booked profits, while construction to clothing conglomerate Kolon Corp lost 3 percent after one of its buildings collapsed killing 10 people.

The Korea Composite Stock Price Index (KOSPI) was down 0.4 percent as of 0225 GMT, trading at 1,938.08 points.

"The market recently rose rapidly on eased concerns over the global growth outlook to prompt some profit taking activity," said Kim Yong-goo, a market analyst at Samsung Securities.

Offshore investors were net sellers of 66.4 billion won ($62.62 million) worth of stocks as of 0226 GMT, and institutions offloaded a net 29.9 billion won worth.

Investors were keeping a weather eye on the the Bank of Japan, with a policy decision expected between 0230 to 0500 GMT, though it widely expected to leave its monetary stance unchanged.

Decliners outnumbered advancers 432 to 313.

Among the decliners was Kolon Corp, down more than 3 percent in early trade after one of its buildings at a mountain resort in southern South Korea collapsed, killing 10 people overnight.

Other affiliates of Kolon also fell. Kolon Fashion Material Inc and Kolon Industries Inc lost around 3 and 2 percent, respectively.

Meanwhile, shares related to STX Group and its affiliates rebounded on Tuesday after plummeting on Monday after prosecutors raided their offices as part of a probe into graft allegations. STX Corp jumped 7 percent after sliding 15 percent in the previous session.

The KOSPI 200 benchmark of core stocks was down 0.4 percent, while the junior KOSDAQ edged 0.3 percent higher. ($1 = 1060.4000 Korean won) (Additional reporting by Jungmin Jang; Editing by Simon Cameron-Moore)

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