Techs, airlines, shippers all fall on Kospi
The benchmark Kospi tumbled 27.4 points to 1,800.58 yesterday. Volume was moderate at 276.6 million shares worth 5.2 trillion won ($4.9 billion) with losers outpacing gainers, 580 to 230.Tech shares fell heavily on rumors that Nokia Corporation, the world’s largest mobile phone maker, may cut its handset prices. Market leader Samsung Electronics fell 4.0 percent to 679,000 won, and LG Electronics closed down 3.8 percent at 140,500 won after plunging to 130,500 won.
Airlines traded in negative territory, hurt by soaring energy prices. No. 1 carrier Korean Air lost 3.4 percent to 46,450 won, and its smaller rival Asiana Airlines declined 4.1 percent to 5,440 won.
STX Pan Ocean Company, Korea’s biggest bulk shipper, lost 150 won, or 5.7 percent, to 2,480, the most since April 1. Korea Line Corporation, the second largest, retreated 8,500 won, or 4.2 percent, to 192,500, the lowest since April 22.
The Baltic Dry Index, a measure of commodity-shipping rates, fell 1.6 percent on May 23 in London, the third day of declines. That’s the longest losing streak since the period ended March 25.
Korea Electric Power Corporation, which supplies almost all the power in the country, climbed 300 won, or 0.9 percent, to 33,800, the most since May 15. The company said it plans to buy 14 coal-fired power plants in China through its local joint venture.
LG Chem Limited, Korea’s biggest chemicals maker, declined 4,400 won, or 4.5 percent, to 94,200, the lowest since April 22. Tong Yang Investment Bank cut its recommendation to “hold,’’ from “buy,’’ citing a possible glut of naphtha following production increases in China and rising raw-material costs.
The local currency closed at 1,048.50 won against the dollar, down 0.90 won from Friday’s close, as refineries picked up the greenback to settle bills amid rising oil costs, dealers said. The won also fell as offshore investors cut their stock holdings, they added.
Bond prices, which move inversely to yields, fell. The return on benchmark three-year Treasuries added 0.01 percentage point to 5.4 percent and the yield on five-year government bonds rose 0.03 percentage point to 5.5 percent.
Yonhap, Bloomberg
with the Korea JoongAng Daily
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