Shipbuilding slides, takes market with it
Profit taking by individual and foreign investors led to a drop in Seoul’s main index yesterday. The Kospi fell 27.9 points, or 1.44 percent, closing at 1,906.42.The Korea Exchange, which runs the Korean bourse, said yesterday’s fall was partly caused by the New York stock market’s slight retreat last Friday. U.S. investors were taking a wait-and-see attitude before the Federal Reserve Board’s decision on interest rates, which will come Tuesday (U.S. Time), the exchange said.
Machinery, shipbuilding, securities and construction shares retreated, while banking and non-steel metal stocks advanced.
Machinery and shipbuilding shares were down sharply. Hyundai Heavy Industries skidded 5 percent, Doosan Heavy Industries and Construction plunged 9.5 percent, Samsung Heavy Industries lost 6.4 percent and Daewoo Shipbuilding and Marine Engineering skidded 2.1 percent. Samsung Heavy’s stock price sank rapidly at midday due to an oil spill off Korea’s west coast that was caused by a crane vessel operated by Samsung. The Samsung Group’s slush fund scandal also hurt the stock. Samsung Securities was down 6.8 percent because of the scandal. Samsung Marine and Fire Insurance, Samsung Heavy’s insurer, dropped 2.9 percent.
Brokerages were also weak. Mirae Asset fell 7 percent amid the Financial Supervisory Service’s scrutiny of asset management companies. Both Daishin Securities and Shinyoung Securities dropped 3.2 percent. Due to the ongoing probe, shares held in large quantities by Mirae Asset’s asset management arm lost value, including Doosan and DC Chemical.
Decliners overwhelmed advancers, 563 to 249. Trading volume was 277.8 million shares.
The secondary Kosdaq fell 8.46 points, or 1.13 percent, ending at 739.19. Losers led gainers, 581 to 369. A total of 580.5 million shares changed hands.
By Limb Jae-un Staff Reporter [jbiz91@joongang.co.kr]
with the Korea JoongAng Daily
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