Investors remain wary despite good news
Both the main and secondary markets in Seoul tumbled yesterday despite optimism on Wall Street after oil prices fell for a fourth consecutive day.The main Kospi retreated 15.57 points, or 1 percent, to close at 1,509.99. Meanwhile the Dow Jones Industrial Average advanced 207.38 points, or 1.9 percent, overnight to 11,446.66, a second consecutive rise.
The Korean benchmark started off strong, but later in the day massive selling by foreign investors and program sales weakened the market.
Kim Hak-gyun, a senior analyst at Korea Investment and Securities, said, “Although oil prices have been falling, Asian markets have been dragged down by the growing concern that the improvement in JP Morgan’s performance may not continue over the long run.”
Kim also said that the fact that relief measures for Fannie Mae and Freddie Mac will be limited drove the Asian market down.
Foreign investors sold a total of 182.9 billion won ($180.4 million). Most of the shares were concentrated on steel, electronics, electricity, finance and chemicals.
The selling spree by foreign investors, which started last month, now totals over 8 trillion won.
While most issues fell, the machinery and banking sectors rose by 0.8 percent and 1.3 percent, respectively.
Steelmakers and ship builders saw the biggest fall in yesterday’s market. Posco, the country’s leading steel company, fell 4.3 percent to 488,000 won. Hyundai Heavy Industries lost 4.8 percent to close at 297,000 won.
Samsung Electronics dropped by 0.3 percent to 582,000 won.
Losers overwhelmed winners, 525 to 276.
The junior Kosdaq dipped 5.28 points, or 1 percent, to close at 522.53, with shares in Internet, fabric, clothing, steel, transportation and software all falling.
NHN took the biggest hit as its value plunged 4 percent to 156,000 won.
Total traded shares were 634.7 million shares valued at 1 trillion won.
Losers outweighed winners, 571 to 375.
By Lee Ho-jeong Staff Reporter [ojlee82@joongang.co.kr]
with the Korea JoongAng Daily
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