Selling spree sparks sharp losses on Kospi
Korean stocks fell sharply yesterday as foreign investors sold off steel, tech and telecom shares, hurt by setbacks in European and Asian markets, analysts said.The benchmark Kospi fell 20.85 points, or 1.1 percent, to 1,895.05.
Volume was moderate at 296.1 million shares worth 5.2 trillion won ($5.6 billion), with losers outnumbering winners 401 to 390.
“Losses in European markets and a weak performance of Asian stocks weighed on investor sentiment,” said Kim Hak-gyun, an analyst at Korea Investment & Securities. “The decline extended later in the day as foreigners engaged in a massive sell-off by dumping blue-chip shares.”
Steel and tech companies closed lower, leading the market decline.
Steelmaking giant Posco fell 3.4 percent to 589,000 won, while tech bellwether Samsung Electronics lost 1.5 percent to 581,000 won.
Telecoms remained in the red on profit-taking. Top mobile carrier SK Telecom dropped 1.5 percent and fixed-line Internet and telephone operator KT shed 2 percent.
Banks and shipbuilders also weighed on the market. No. 1 lender Kookmin Bank fell 3.4 percent and shipbuilding giant Hyundai Heavy Industries closed down 2.9 percent.
Building shares, however, advanced on the optimistic view that the government will likely ease real estate market regulations after a new president takes office next year.
Industry leader Daewoo Engineering & Construction surged 4.1 percent, while No. 3 Hyundai Engineering & Construction climbed 4.2 percent.
Korea Plant Service & Engineering, a subsidiary of Korea’s power monopoly Korea Electric Power, rose by the daily limit of 15 percent on its first trading day.
The share started at 17,100 won on the main bourse, up from its initial public offering price of 13,300 won. Shares of the company closed up 14.9 percent to 19,650 won.
Yonhap
with the Korea JoongAng Daily
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