Korean stocks fall for a third straight day
Korean stocks fell for a third day yesterday as investors dumped steel, financial and transportation shares, unnerved by overnight plunges in U.S. markets, analysts saidThe benchmark Kospi lost 25.64 points, or 1.4 percent, to 1,847.51. Volume was moderate at 306.7 million shares worth 5.8 trillion won ($5.5 billion) with losers outpacing gainers 573 to 234.
“U.S. market pullbacks seemed to dent investor sentiment here, triggering a sell-off in almost all sectors,” said Bae Sung-young, an analyst at Hyundai Securities. “The selling was mainly driven by foreign dumping of such large-cap shares as Posco”
Wall Street dived Tuesday as record-high energy prices stoked concerns over inflation and consumer demand. The price of crude oil closed at $129.07 per barrel in New York, up $2.02 from the previous day.
The Dow Jones industrial average slipped 1.5 percent and the tech-heavy Nasdaq composite index fell 1 percent.
Steel shares slumped as investors took profits from recent gains, analysts said. Industry leader Posco was off 4.8 percent. It was the largest percentage drop in more than a month.
Rising oil prices hit transportation shares hard, with shippers among the biggest decliners. No. 1 shipper Hanjin Shipping dropped 1.9 percent and smaller Hyundai Merchant Marine plunged 3.6 percent.
Financial and auto shares added to the decline. Top non-life insurer Samsung Fire & Marine Insurance plummeted 4.4 percent. Credit Suisse Group cut its recommendation to “neutral,” from “outperform,” in a report, citing “slowing earnings growth outlook.”
Hyundai Motor, Korea’s largest automaker, declined 1.4 percent. A group of shareholders, including Solidarity for Economic Reform, filed a civil suit against Chairman Chung Mong-koo to have him compensate the company after he was convicted of breach of duty.
Kia Motors lost 3.5 percent. CJ Investment & Securities cut its recommendation on Korea’s second-biggest automaker to “hold,” from “buy,” citing recent price gains and mounting losses at overseas affiliates, in a report.
Major tech issues, however, rebounded from the previous day’s slide. Tech bellwether Samsung Electronics gained 0.7 percent to 718,000 won. Yonhap, Bloomberg
with the Korea JoongAng Daily
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