Kospi tops 2,000 points, then retreats for a loss
The Kospi passed 2,000 points for a short time yesterday morning but closed the day slightly lower than the previous trading day’s close. The main index ended at 1,992.26, a drop of 0.79 point.It opened at 2001.52 and hit 2,005.02, the highest level ever, but selling by foreign investors pulled the index down to 1975. Individual investors and program buying pushed the index back up. Foreign investors sold for the seventh consecutive day.
It took seven trading days for the Kospi to hit 2,000 points after exceeding 1,900.
“The valuation of the stock market rose too fast, and foreign investors are likely to sell more shares to take profits,” said Choi Jae-shik, an analyst at Daishin Securities. “But money is flowing into stock funds, and institutional investors still have buying power.”
Chemical, steel and metal, machinery, electric and gas, bank, textile, shipbuilding and automobile shares advanced, while pharmaceutical, electronics, construction, telecom, brokerage, insurance and food and beverage stocks retreated.
Brokerage shares lost over 5 percent following recent steep appreciation due to speculation over mergers and acquisitions. SK Securities and Bridge Securities sank by the daily limit of 15 percent.
SK Telecom lost 2.2 percent after the government said it would allow newcomers to lease the existing network to promote competition in the mobile telecommunication industry.
Decliners overwhelmed advancers, 485 to 298.
The tech-heavy Kosdaq finished at 813.47, down 5.32 points.
Individual and foreign investors were buyers, while institutional investors were sellers. Among large cap shares at the market, NHN shed 2.3 percent, LG Telecom declined 5.4 percent and Hanaro Telecom lost 3.9 percent.
Losers led gainers, 598 to 330.
By Limb Jae-un Staff Writer [jbiz91@joongang.co.kr]
with the Korea JoongAng Daily
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