Markets end 4-day rally as foreign investors sell

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Markets end 4-day rally as foreign investors sell

Korean stock markets ended a four-day rally yesterday as foreign investors sold shares to profit from recent gains, analysts said.
The Kospi fluctuated throughout the day but ended at 1,783.79, losing 24.06 points, or 1.3 percent.
Stock brokerages were among the biggest losers. Over the past week, they had added almost 30 percent, but they shed 10.4 percent yesterday on average. Leading brokerage Samsung Securities fell 5.6 percent to 74,100 won ($80), and its smaller rival, Hyundai Securities, dipped 13.5 percent.
Banking shares, however, rose as the government announced it would apply less strict regulations on banks expanding into the securities industry.
The State-run Industrial Bank of Korea, which announced it intends to establish a securities firm, went up 9.2 percent. Woori Financial Group added almost 5 percent on news that the government may sell a portion of the company to certain pension funds. Kookmin Bank, the country’s largest lender, and Shinhan Financial Group rose 3.9 and 4.5 percent, respectively.
“Up to now, valuation of banks was based solely on their performance,” said Lee Un-taek, at Hana Investments & Security. “But with the new government regulation that allows them to establish security companies, expectations are raising the stock prices of banks.”
Large-caps closed lower across the board as foreign investors unloaded shares to reap the profit from recent rallies. Market leader Samsung Electronics declined 1.4 percent, and Posco dropped 0.63 percent to 472,500 won. Trading volume was heavy. More than 675 million shares worth 9.2 trillion won were traded. Losers outpaced winners, 629 to 168.
The tech-heavy Kosdaq followed by falling 22.7, or 2.8 percent to 797.27. More than 805 million shares worth 3.2 trillion won changed hands. Losers outnumbered winners, 735 to 222.


By Hwang Young-jin Staff Writer [yhwang@joongang.co.kr]
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