Index begins week with 67 point slide
The Kospi fell by 67.05 points, or 3.4 percent, yesterday, closing at 1,923.42.The market opened lower and even hit 1,901 during trading hours due to negative news overseas, including a sluggish U.S. economy, U.S. subprime mortgage woes and China’s strong retrenchment policy.
“The forecast for the Korean stock market is not that bright until U.S. and Chinese stock markets return to stability. However, a recovering local economy will curb further steep declines,” Sung Jin-kyung, a researcher at Daishin Securities, said.
Samsung Electronics lost 1.5 percent to 532,000 won ($584), and Posco fell 3.4 percent.
The world’s largest shipbuilder, Hyundai Heavy Industries, Daewoo Shipbuilding & Marine Engineering and STX Shipbuilding lost 3.6 percent, 2.5 percent and 9.3 percent, respectively. The state-run Korea Electric Power Corporation slipped 0.3 percent.
Doosan Heavy Industries & Construction shed 8 percent, and LG Group lost 10. 3 percent. As for the banking and securities industry, shares declined. Shinhan Financial Network lost 0.2 percent, Woori Financial Group fell 0.9 percent and Korea Exchange Bank dropped 0.7 percent. Samsung Securities and Mirae Asset Securities, lost 8.9 percent and 7.5 percent, respectively.
However, the nation’s leading retailers did well. Shinsegae advanced 2.8 percent and Lotte Shopping climbed 4.1 percent.
Experts say that domestic consumption-related shares, which are not affected by oil prices, are rising as an alternative in the Seoul stock market. Traded volume totaled 308.2 million shares worth 69 trillion won.
The secondary Kosdaq also stumbled, closing at 754.73, down 24.3 points or 3.1 percent. Total traded volume was 419.4 million shares valued at 1.8 trillion won.
By Sung So-young Staff Writer [so@joongang.co.kr]
with the Korea JoongAng Daily
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