After record highs, investors pull back
“Markets are falling today as a reaction to their big climbs, and there’s a bit of profit-taking,” said Chu Moon-sung, an analyst at Shinhan BNP Paribas Investment Trust Management in Seoul. “It’s not the end of the gains, just a short break.”
The Kospi retreated 10.55, or 0.5 percent, closing at 2,052.37. On the previous day it closed at a record 2,062.92. The Kosdaq fell 0.3 percent to 804.99. Kospi 200 futures expiring in December lost 0.3 percent to 260.80, while the underlying index dropped 0.6 percent to 258.87.
SK Holdings, the holding arm of the country’s third-largest industrial group, dropped 4.7 percent to 253,000 won ($277.54). Shinsegae, which runs Korea’s biggest discount-store chain, lost 3.2 percent to 719,000 won.
Kookmin declined 4.1 percent to 74,200 won. It said Monday that net income from lending dropped for the third straight quarter. Goldman Sachs cut its recommendation on Kookmin to “neutral” from “buy” in a note, citing “reduced earnings visibility in the short term.”
“Earnings momentum will probably stay weak in 2008 and the year after,” said Kim Young-ki, an analyst at SH Asset Management. “The stock won’t fall much from here, but there’s not much spring in its step either.”
Hynix, the world’s second-largest computer-memory maker, slipped 2 percent to 24,850 won. UBS cut its 12-month price estimate by 17 percent to 27,000 won, in a report.
Hyundai Engineering & Construction, Korea’s biggest builder by market value, lost 5.1 percent to 88,700 won.
Hyundai Mobis, Korea’s biggest auto-parts maker, advanced 2.7 percent, to 90,500 won. LG Telecom slipped 0.9 percent to 9,600 won.
Bloomberg
with the Korea JoongAng Daily
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