[THE INVESTOR] South Korean stocks closed lower on Aug. 21 as foreigners and institutions scaled back on their stockholding on profit taking. The Korean won rose against the US dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) fell 3.37 points, or 0.14 percent, to close at 2,355.00. Trade volume was moderate at 204.5 million shares worth 3.753 trillion won (US$3.3 billion), with decliners outnumbering advancers 478 to 308.

Institutions dumped a net 103.98 billion won worth of stocks and foreigners also sold a net 20.52 billion won of stocks.

The KOSPI index lacks strong upward momentum as investors remain cautious awaiting cues from the US Federal Reserve‘s annual economic policy symposium in Jackson Hole, Wyoming this week, analysts said.

Blue-chip stocks fell across the board, with bellwether Samsung Electronics inching down 0.13 percent to 2,342,000 won and state-run utility Korea Electric Power Corp. declining 1.45 percent to 44,200 won.

But auto stocks advanced, keeping the main index from falling further. Top carmaker Hyundai Motor rose 2.42 percent to 148,000 won and its affiliate Kia Motors climbed 0.99 percent to 35,700 won. 

The local currency closed at 1,139.00 won against the US dollar, up 2.30 won from the previous close.    

By Alex Lee and newswires (alexlee@heraldcorp.com)