Interest rate concerns lead to foreign sell-off
Korea’s main bourse slid yesterday after a more than 300-billion-won ($323 million) sell-off by foreign investors. The Kospi fell 7.89 points, or 0.5 percent, to 1,721.99.“Foreign investors continued their selling spree on weak overseas markets and concerns over rising global interest rates,” said Kim Hak-kyun, an analyst at Korea Investment & Securities. U.S. stocks closed lower Tuesday as investor sentiment was dampened by surging bond yields. The Dow Jones industrial average fell 1 percent, and the Nasdaq composite index shed 0.9 percent. The yield on U.S. 10-year Treasury bonds rose to a five-year high on Tuesday.
Blue chips were gloomy except for top steelmaker Posco. Samsung Electronics lost 0.9 percent to 573,000 won, while Posco climbed 0.3 percent.
With Kookmin Bank remaining unchanged, Shinhan Financial Group and Woori Financial Group fell 1.1 percent and 1.4 percent, respectively.
Hynix Semiconductor dropped 1.9 percent, and LG.Philips LCD slid 0.8 percent. Hyundai Heavy Industries, the world’s top shipbuilder, went down 2.2 percent.
Construction giants Daewoo Engineering and Construction and Hyundai Engineering and Construction shed 3.1 percent and 1.6 percent, respectively. GS Engineering and Construction fell as much as 4.2 percent. But conglomerates such as GS, CJ and Doosan advanced after CJ announced on Tuesday it would adopt a holding company structure.
Total traded volume was 704.1 million shares worth 7.1 trillion won. Declining shares outnumbered advancers, 408 to 371.
The Kosdaq went up 2.48 points, or 0.3 percent, to 765.53. LG Telecom shot up 5.8 percent, and Internet service carrier Hanaro Telecom jumped 5.8 percent. Traded shares totaled 540.9 million valued at 2.2 trillion won, with losers beating winners, 503 to 430.
By Seo Ji-eun Staff Writer [spring@joongang.co.kr]
with the Korea JoongAng Daily
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