Korean stocks down for second day in a row
Korean stocks closed lower for a second day yesterday as investors dumped tech, steel and machinery shares on overnight setbacks in the U.S. and poor performances in other Asian markets.“Despite eased foreign selling, the market seemed to be swayed by expanded unloading of shares by institutions,” said Lee Sung-yeop, an analyst at Goodmorning Shinhan Securities.
“Plunges in Chinese markets also worsened investor sentiment here, prompting a sell-off mainly in steel and chemical shares, whose businesses are closely related to the mainland.”
The benchmark Kospi fell 14.4 points, or 0.91 percent, to 1,562.72. Volume was thin at 227.38 million shares worth 3.2 trillion won ($3.07 billion), with losers outperforming gainers, 512 to 294.
Most large-cap shares here lost ground, with tech and machinery shares sending the market lower.
Chipmaking giant Samsung Electronics fell 1.3 percent to 587,000 won ($56), while No. 1 power equipment manufacturer Doosan Heavy Industries and Construction plunged 1.6 percent. Steel shares added to the downward move.
Top steelmaker Posco declined 1.58 percent and its smaller rival Hyundai Steel shed 1.39 percent.
Major shipper Hanjin Shipping rose 1.2 percent, and No. 2 carmaker Kia Motors inched up 0.38 percent due partly to optimism that a weakening local currency could boost its price competitiveness in overseas markets.
Top flag carrier Korean Air, however, dived 2.99 percent.
Korea Electric Power Corp., supplier of almost all of the country’s power, fell 1.5 percent, the lowest since Aug. 4.
The company yesterday posted a second-quarter loss wider than analysts expected as fuel costs rose while the government capped electricity tariffs to fight inflation. NCsoft Corp., Korea’s biggest online-game maker, retreated 2.4 percent, the most since July 29. The company said yesterday its second-quarter net income fell 42 percent from a year earlier to 6.1 billion won.
Ssangyong Motor, the Korean unit of China’s biggest automaker, dropped 3.9 percent, the lowest since July 22.
Yonhap, Bloomberg
with the Korea JoongAng Daily
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