Market falls on profit taking, stronger won
Seoul’s main stock market slipped yesterday from a record high, as investors took profits from the recent rally. The Kospi closed at 1,528.66, down 3.38 points, or 0.2 percent.“As the market had risen so sharply in the short term, it might remain in correction for a while,” said Kim Jung-hyun, an analyst at Goodmorning Shinhan Securities.
Concerns about the appreciation of the local currency against the U.S. dollar also pulled down the market, analysts said. The won strengthened by 2.8 won to 929 won per dollar yesterday ― the highest close since Jan 3.
Trade volume on the main stock market was 417 million shares, valued at 4.4 trillion won ($4.8 billion). Declining shares outnumbered advancers 459 to 299.
Leading technology shares led the day’s drop. Hynix Semiconductor fell 0.3 percent. LG.Philips LCD Co. lost 1.4 percent. Samsung Electronics and LG Electronics closed unchanged. Financial shares also lost ground. Kookmin Bank, the nation’s biggest lender, slid 0.9 percent.
On the other hand, retail shares were strong, on a government report that retail sales increased last month. Shinsegae jumped 5.7 percent. Hyundai Department Store climbed 3.9 percent.
SK Networks soared 10 percent on the expectation that the trading company might emerge from a debt resolution program earlier than scheduled. Creditors have been working to resolve SK Networks’ debt since 2003.
The secondary Kosdaq index fell for the first time in 14 trade sessions. The index closed at 690.16, down 6.93 points, or 1 percent. Profit taking and concerns about prosecutors’ investigation of an auto-parts maker, identified only as “L,” for possible stock manipulation dampened the market.
Declining shares overwhelmed advancers 644 to 294. Trade volume was 844 million shares valued at 2.5 trillion won.
By Moon So-young Staff Writer [symoon@joongang.co.kr]
with the Korea JoongAng Daily
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