Financials lead losses on slow day for Kospi
Korean stocks closed slightly lower yesterday on worries that a post-Olympic economic downswing in China could hurt emerging markets, analysts said.The benchmark Korea Composite Stock Price Index declined 3.97 points, or 0.3 percent, to 1,577.12 in choppy trading. Volume was thin at 248.42 million shares worth 4.2 trillion won ($4.1 million), with losers outperforming gainers, 468 to 327.
The key index briefly gained ground in the afternoon in sync with Chinese stocks during the session, rising above the 1,590-mark, but failed to sustain momentum as retail investors continued a selling spree.
“Concerns of a global economic downturn prompted capital flight from emerging markets, as reflected in the recent Chinese stock losses from an expected economic contraction following the Olympics,” said Bae Sung-young, an analyst at Hyundai Securities. The Shanghai Composite Index, China’s key stock index, lost 0.52 percent yesterday after tumbling 5.2 percent to a 19-month low Monday on concerns that mounting inflationary pressure will hamper China’s economic growth.
Financial shares led overall losses. Top lender Kookmin Bank slumped 2 percent to 59,300 won and Shinhan Financial Group fell 1.7 percent to 49,450 won. Leading non-life insurer Samsung Fire and Marine lost 1.4 percent, finishing at 208,000 won.
Chemical and steel shares also finished lower. Top refiner SK Energy slid 0.8 percent to 120,000 won, and leading steelmaker Posco shed 0.7 percent to 473,500 won on a projected decline of demand from China.
Export-oriented stocks, however, gained ground, lifted by overnight U.S. stock gains. Market heavyweight Samsung Electronics rose 1.7 percent to 595,000 won, and its consumer electronics rival LG Electronics leaped more than 3.8 percent to 122,500 won. Hyundai Motor added 0.6 percent to end at 73,300 won.
The local currency closed at 1,034.7 won against the greenback, down 2.8 won from Monday’s close, as offshore investors snapped up the greenback, dealers said.
Bond prices, which move inversely to yields, fell sharply. The return on three-year Treasuries climbed 0.04 percentage point to 5.76 percent and the benchmark yield on five-year government bonds gained 0.05 percentage point to 5.79 percent.
Yonhap
with the Korea JoongAng Daily
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