Friday brings longest losing streak since ’04
Korea’s stocks declined for a seventh day yesterday, sending the benchmark on its longest losing streak in three years on concern that global economic growth will slow from credit market losses in the United States.The Kospi closed down 26.14, or 1.5 percent, to 1,772.88 in Seoul, marking a 10 percent decline that wiped out $117 billion of market value. The index posted its longest losing streak since a seven-day slide in October 2004. The Kosdaq decreased 3 percent to 700.68.
“Equipment makers and manufacturers of machines are not attractive when global economic growth is weak because companies will not be expanding,” said Kim Woo-sik, an analyst at SH Asset Management.
Hyundai Heavy, the world’s largest shipbuilder, fell 18,500 won ($20), or 4.5 percent, to 390,500 won, completing a 22 percent, seven-day loss. Doosan Heavy Industries and Construction, Korea’s biggest maker of electricity generators and the second- biggest gainer this year among the top 50 companies in the Kospi, lost 7,000 won, or 5.4 percent, to 122,000 won, trimming this year’s gain to 178 percent.
China’s move to cool its economy is also behind the slump in Korean manufacturers of capital goods, according to Cho Min-keon, who manages the equivalent of $540 million at Kyobo Investment Trust Management. “Equipment and machine industries, such as shipbuilding, are very sensitive to the Chinese economy.”
Daewoo Shipbuilding and Machinery Engineering, the world’s third-biggest shipyard, lost 3,500 won, or 8.3 percent, to 38,500. Posco, Asia’s third-biggest steel maker, declined 8,000 won, or 1.4 percent, to 559,000 won, ending the week 4 percent lower.
Samsung Electronics, the world’s largest maker of liquid-crystal displays, gained 18,000 won, or 3.3 percent, to 557,000 won. The company said it plans to invest 2.1 trillion won next year to expand production capacity at its newest LCD factory. Bloomberg
with the Korea JoongAng Daily
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