Kospi continues slide on U.S., China woes
Seoul’s main stock market ended sharply lower yesterday after Wall Street’s tumble Friday on higher oil prices and reports of U.S. corporate losses related to subprime mortgage defaults. The benchmark Kospi closed at 1,903.81, down 66.29 points, or 3.4 percent.“Uncertainty is increasing on possible simultaneous corrections in the U.S. and Chinese stock markets and oil price hikes,” said Sung Jin-kyung, head of Daishin Securities’ investment strategy team.
Blue chips led the plunge. Samsung Electronics, Korea’s biggest company by market value, fell 3.3 percent to 522,000 won ($569.24). Posco, the second largest, also lost 3.3 percent. Hyundai Motor shed 1.5 percent.
Concerns about China’s possible tightening policies continued to batter local shipbuilders that had benefited from surging demands in that country. Hyundai Heavy Industries, the world’s biggest shipyard, slid 4.5 percent. Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering plunged 7.5 percent each.
Banking shares were also weak. Kookmin Bank, the nation’s top lender, declined 1.2 percent. Shinhan Financial Group, the second largest, lost 4.6 percent. Hana Financial Group slid 1.1 percent.
Exceptionally, LG.Philips LCD rose 1.4 percent after the display manufacturer said it has developed a liquid-crystal display panel with what it claims is the world’s fastest response speed.
Trade volume was 349.6 million shares, valued at 7 trillion won.
Losing shares overwhelmed winners, 696 to 108.
The Kosdaq index fell 18.03 points, or 2.3 percent, to close at 768.90.
Total trading reached 467.5 million shares on the secondary market with a value of 1.9 trillion won. Declining shares led advancers, 795 to 185.
By Moon So-young Staff Writer [symoon@joongang.co.kr]
with the Korea JoongAng Daily
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