Chinese mutual funds steal Kospi’s thunder
Low demand for local stocks drove the main index down yesterday as selling by foreign investors and outflowing money to Chinese mutual funds continue to apply pressure.The Kospi fell 29.63 points, or 1.5 percent, closing at 2,005.76. Foreign investors sold for the third straight day.
Total deposits in local stock funds stood at 49.6 trillion won ($54 billion), a drop of 48.6 billion won, as of last Friday. This is the first decline in 21 weeks. However, total deposits in Chinese mutual funds grew by 1.3 trillion won in the first week of this month and by 1.7 trillion won in the second week.
“Some investors are withdrawing money from domestic funds and investing the money in Chinese mutual funds,” said Park Hyun-cheol, a fund analyst at Meritz Securities.
Shipbuilders rose, but all other industries fell, especially electronics, pharmaceuticals and securities. With a gloomy outlook for the semiconductor industry, Samsung Electronics and Hynix Semiconductor plunged to one-year lows. Samsung dropped 5 percent to 515,000 won, and Hynix lost 4.6 percent, ending at 26,700 won. LG.Philips LCD fell 4.5 percent.
In contrast, STX Pan Ocean hit the daily ceiling of 15 percent, Hanjin Shipping jumped 6.3 percent, and Hyundai Merchant Marine increased 3.7 percent. Daewoo Shipbuilding and Marine Engineering, a shipbuilder, jumped 7.4 percent with improved earnings in the third quarter.
Among large cap stocks, Posco shed 0.9 percent, Hyundai Heavy Industries declined 2.8 percent, and Hyundai Motor was down 3.7 percent. Decliners overwhelmed climbers, 631 to 202.
The secondary Kosdaq fell 21.20 points, or 2.6 percent, to finish at 792.73. This is the first time in 11 trading days for the market to fall below 800. Losers led gainers, 163 to 801.
By Limb Jae-un Staff Writer [jbiz91@joongang.co.kr]
with the Korea JoongAng Daily
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