Uncertainty in China, oil pull Kospi lower
Seoul’s main stock market sank yesterday on concerns about higher oil prices, marking the first weekly loss in five weeks. The Kospi index closed at 1,970.1, down 34.99 points, or 1.8 percent.“Oil prices are expected to remain high for a while due to seasonal factors and expanding demand due to the growth of the global economy,” said Kim Yong-gyun, an analyst at Daishin Securities.
Analysts also said investors were concerned that the Chinese stock market might be a bubble ready to burst after steep gains over the past several years. On Thursday, China’s Shanghai composite index tumbled 3.5 percent.
Blue-chip steel makers and shipbuilders, which have benefited from surging demand from China, were battered. Posco, Korea’s top steel maker, lost 2.6 percent. Hyundai Heavy Industries, the world’s biggest shipbuilder, also dropped 2.6 percent.
SK Energy, the country’s biggest oil refiner, lost 4 percent. S-Oil, the third biggest, shed 3.5 percent after it said its third-quarter net income deteriorated.
Korea Electric Power, which supplies almost all the power in the country, slipped 0.1 percent. Korean Air Lines, Korea’s largest carrier, dropped 4 percent. Asiana Airlines, the second biggest, lost 3.9 percent.
On the other hand, technology stocks rebounded. Samsung Electronics gained 3.5 percent. LG.Philips LCD rose 1.7 percent.
Hyundai Securities tumbled 11 percent after Hyundai Motor Group denied a report that it may take over the brokerage firm.
Trade volume was 383.3 million shares worth 7.3 trillion won ($8 billion). Losing shares overwhelmed winners, 515 to 279.
The secondary Kosdaq index slid 5.27 points, or 0.7 percent, to close at 786.93. Volume was 492.7 million shares, valued at 1.8 trillion won. Advancing shares led decliners, 504 to 443.
By Moon So-young Staff Writer [symoon@joongang.co.kr]
with the Korea JoongAng Daily
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