Market slide slowing, but Kospi down 3.2%
Seoul stock markets continued a double-digit slide yesterday, pushing the main index to a three-month low.Widespread concern over a U.S. credit crunch fanned investor jitters. But the pace of the downturn slowed amid expectations that the recent market upheaval may be nearing an end.
The benchmark Kospi skidded 53.91 points, or 3.2 percent, to end at 1,638.07, its lowest point since May 21.
“The biggest factor will be the performance of U.S. stock markets, but the latest rout is likely nearing an end,” Park Hyo-jin, an analyst at Goodmorning Shinhan Securities, said in a report. “We have little direct investment exposure to U.S. subprime mortgages, and the fundamentals of Asia’s domestic economies have not sustained major damage.”
Market bellwether Samsung Electronics shed 1.4 percent to end at 572,000 won. Other blue chip shares also bled heavily as Posco, the nation’s largest steelmaker, skidded 8.1 percent, and Korea Electric Power Corp. declined 1.8 percent.
Tech shares also tumbled as Hynix Semiconductor fell 3.4 percent, and SK Telecom, Korea’s top wireless operator, shed 1.5 percent.
Shinsegae, which operates the nation’s largest discount chain, E-Mart, declined 4.9 percent after government data yesterday showed sales at discount stores dropped 2.3 percent in July from a year earlier, the third decline in four months. Lotte Shopping dropped 5.2 percent, and Hyundai Department Store inched down 0.9 percent.
Trading volume was 487.1 million shares, worth 7.3 trillion won ($7.8 billion). Decliners led advancers, 579 to 218.
The tech-laced Kosdaq lost 15.6 points, or 2.3 percent, to end at 673.48. Trading volume was 640.2 million shares, worth 2.1 trillion won. Losers beat gainers, 529 to 406.
By Jung Ha-won Staff Writer [hawon@joongang.co.kr]
with the Korea JoongAng Daily
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