Global concerns drag Kospi down again
Following the plans announced yesterday by China to tighten the money market and another down day on Wall Street, Korean stocks on the primary index dropped yesterday by 21.54 points, or 1.1 percent, to close at 1,926.20.“Global concerns about the U.S. economy are pulling down shares,” said Kee Ho-sam, an analyst with UBS Hana Asset Management. “There’s also the lingering concern about a cooling Chinese economy that led investors to dump steel makers and shipbuilders.”
For the seventh consecutive day, foreign investors sold more shares than they purchased, but institutional and individual investors defended the 1,900 mark by purchasing shares.
Most of the nation’s top-10 listed firms by market value fell. Samsung Electronics, the nation’s No.1 blue chip, slipped 2.3 percent to 557,000 won ($607) while the Korea Electric Power Corporation fell 0.4 percent. Hyundai Motor and Kia Motors lost 4.1 percent and 1.9 percent, respectively.
With the announcement by the Chinese government that it will try to decrease the money flow, China-related industries such as shipbuilding, steel and shipping fell. Korea’s top steel maker, Posco, lost 1.4 percent and Dongkuk Steel declined 2.7 percent. Daewoo Shipbuilding and Marine Engineering slipped 4.3 percent.
IT-related shares also joined the downward rally. Defying the trend, however, Samsung Corporation advanced 0.7 percent, GS Engineering and Construction shot up 4.6 percent and Doosan climbed 4.0 percent. Traded volume totaled 304.3 million shares worth 64 trillion won.
Unlike the Kospi, the secondary Kosdaq leapt 4.0 points, or 0.5 percent, to close at 755.29, thanks to rallies by Internet shares. NHN, the nation’s largest Internet portal operator, jumped 4.1 percent and Daum Communication advanced 0.3 percent. Total traded volume was 379.4 million shares, valued at 1.4 trillion won.
By Sung So-young Staff Writer [so@joongang.co.kr]
with the Korea JoongAng Daily
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