Markets slide on fears of a possible correction
Seoul’s main bourse slid yesterday as investors started fretting about the possibility that the market will undergo a correction sooner or later. The Kospi fell 13.25 points, or 0.8 percent, to 1,757.73.“The market, which underwent fluctuations throughout the session, closed lower as investors dumped shares, mainly large caps, which have risen substantially in recent upswings,” said Kim Hak-kyun, an analyst at Korea Investment & Securities.
Technology bellwether Samsung Electronics edged down 0.5 percent to 588,000 won ($635), and top steelmaker Posco dropped 1.3 percent as concern over U.S. subprime mortgage defaults mounted and the governor of China’s central bank said he cannot rule out another interest rate hike. Top lender Kookmin Bank lost 1.4 percent, Shinhan Financial Group dropped 1.2 percent, and Woori Financial Group was down 2.1 percent. Korea Exchange Bank, controlled by Lone Star Funds, a U.S.-based equity fund, plunged 3.9 percent. Lone Star last week sold 13.6 percent of its Korea Exchange shares in block trades.
While the No. 1 mobile service carrier, SK Telecom, lost 0.2 percent, top automaker Hyundai Motor advanced 3.2 percent on news that its unionized workers cut back on their walkout period.
Shipbuilding shares showed exceptional strength during the session. Hyundai Heavy Industries jumped 6.1 percent, and Daewoo Shipbuilding and Marine Engineering shot up 4.4 percent.
Traded volume totaled 389.8 million shares, valued at 5.7 trillion won. Declining shares crushed advancing ones, 533 to 237.
The secondary Kosdaq retreated 12.78 points, or 1.6 percent, to 769.80. NHN, operator of the nation’s most popular portal, Naver, fell 3.2 percent.
Total traded volume was 641.6 million shares worth 2.4 trillion won, with losing shares outnumbering winners, 630 to 289.
By Seo Ji-eun Staff Writer [spring@joongang.co.kr]
with the Korea JoongAng Daily
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