(2nd LD) Seoul stocks close over 3 pct lower amid Samsung's shareholder return plan

Seoul stocks plummeted over 3 percent on Monday following the announcement of Samsung Electronics' shareholder return plan, which disappointed investors. The Korea Composite Stock Price Index (KOSPI) fell 215.99 points, or 3.12 percent, to 6,696.96, with a relatively light trade volume of 264.9 million shares valued at 26.1 trillion won.

The index dropped after large-cap tech shares experienced significant selling pressure from foreign and institutional investors, who collectively offloaded a net 4.97 trillion won worth of shares. Meanwhile, retail investors bought a net 3.32 trillion won worth of shares. Samsung Electronics' share price fell 8.7 percent to 257,000 won, and other Samsung-affiliated companies also underperformed.

Analysts noted that the lack of clarity on potential stock buybacks contributed to the sell-off, despite the plan's substantial value ranging between 90 trillion won and 110 trillion won. Investors are closely monitoring external factors, such as Nvidia's upcoming earnings release and U.S. economic data, which recently showed strong service sector growth in August.

Despite the decline, bio firms saw gains, driven by a licensing deal worth 3.2 trillion won between Hanmi Pharm and a U.S. Roche Group subsidiary. The Korean won strengthened against the U.S. dollar, closing at 1,382.4 won, up 4.1 won from the previous trading session. Bond yields also improved, with the three-year Treasury yield dropping 1.8 basis points to 3.836 percent and the five-year government bond yield falling 4.3 basis points to 4.068 percent.