Kospi, Kosdaq both sink on U.S. concerns
Concern over possible stagflation in the U.S. economy led the Korean stock market lower yesterday. The benchmark Kospi shed 53.44 points, or 2.8 percent, closing at 1,841.61 points, after the Dow Jones Industrial Average slid 178.11 points, or 1.32 percent, to 13,339.85 on Friday.“The concern in the United States over a combination of surging inflation and a sagging economy due in part to the subprime mortgage crunch pulled the Asian markets, including Korea, lower today,” said Jung Sung-joon, an analyst at Daishin Securities.
Retailers led the downward trend among industries, falling 3.7 percent. The media industry declined 3.3 percent, while the energy industry fell 3.1 percent.
Most of the nation’s 100 largest firms by market cap dropped. Samsung Electronics, the nation’s No. 1 blue chip, went down 3.6 percent to 560,000 won ($600.80). Posco, slid 1.8 percent. Hyundai Heavy Industries and Kepco, the nation’s only electric power provider, were down 4.3 percent and 0.5 percent, respectively.
SK Telecom, the largest wireless company here, fell 1.7 percent, and KTF, the No. 2 wireless operator, lost 2.3 percent.
Banking shares slumped as well, with top lender Kookmin Bank dropping 2.2 percent. Shinhan Financial Group and Woori Financial Group fell 1.5 percent and 0.9 percent, respectively.
Construction-related shares also had a rough day. Hyundai Engineering and Construction shed 1.8 percent, Daewoo Engineering and Construction lost 0.2 percent and GS Engineering and Construction fell 2.3 percent.
Trading volume was 276.9 million shares, worth 4.7 trillion won. Decliners outpaced the gainers, by 697 to 120.
The Kosdaq dropped 23.04 points, or 3.2 percent, to 702.49. Trading volume was 475.6 million shares, worth 1.7 trillion won. Losers outnumbered gainers, 739 to 231.
By Moon Gwang-lip Staff Reporter [joe@joongang.co.kr]
with the Korea JoongAng Daily
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