Corrections abroad pull Korean markets down
Seoul stock markets plunged for a third straight session yesterday as a series of market corrections in the United States, China and Japan fanned jitters among investors here.The benchmark Kospi tumbled 8.18 points, or 0.5 percent, to close at 1,749.55. Market bellwether Samsung Electronics, Korea’s largest listed firm by value, remained unchanged at 588,000 won ($633.86).
Other blue chip shares suffered. Posco, Korea’s largest steel maker, tumbled 1.1 percent, and Kookmin Bank, the nation’s top lender, shed 0.1 percent. Shinhan Financial Group dropped 0.9 percent. Hyundai Motor, Korea’s top automaker, slid 4.8 percent as its labor union, well known for its hard line activities, announced it would begin a strike on Thursday.
Sauce maker Sempio Foods jumped 14.8 percent on rumors that U.S. hedge fund Steel Partners is seeking to buy a 29 percent stake in the company from a private equity fund operated by Woori Investment & Securities. Steel Partners denied this yesterday.
Stock brokerage shares recovered from a recent slide after Ryu Sang-ho, president of Korea Investment & Securities, expressed intentions to take over another stock broker, fanning expectations of a looming merger and acquisition spree among stock brokers. Shares of SK Securities climbed 7.7 percent, and Meritz Securities gained 6 percent. Seoul Securities leaped by 4.4 percent.
Trading volume was 385.1 million shares, worth 5.2 trillion won. Decliners led advancers, 590 to 193.
The tech-heavy Kosdaq dropped 16.49 points, or 2.1 percent, to end at 780.31 on heavy selling by foreign and local institutional investors. Asiana Airlines declined 3.1 percent, and Seoul Semiconductor dived 7.1 percent. Trading volume was 704.7 million shares, worth 2.6 trillion won. Losers outpaced gainers, 755 to 194.
By Jung Ha-won Staff Writer [hawon@joongang.co.kr]
with the Korea JoongAng Daily
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