Kospi falls on concerns about overseas sales

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Kospi falls on concerns about overseas sales

Korean stocks tumbled yesterday as investors dumped tech, shipyard and other large-cap shares on renewed concerns over financial instability and a global economic slowdown, analysts said.

The benchmark Kospi fell 26.3 points, or 1.7 percent, to 1,541.41. Volume was thin at 256.6 million shares worth 3.3 trillion won ($3.1 billion), with losers outperforming gainers, 620 to 195.

“Foreign investors intensified their selling of local shares on renewed concerns over U.S. financial woes, dragging down the index,” said Lee Sun-yup, an analyst at Goodmorning Shinhan Securities.

“Tech exporters and China-related shares such as steel and shipyard firms were hit hard as an economic slowdown in major countries could reduce overseas sales.”

Technology bellwether Samsung Electronics fell 2.6 percent to 564,000 won and smaller LG Electronics plunged 3.4 percent. The world’s second-largest computer memory chip maker Hynix Semiconductor lost 4.3 percent.

Steel and shipbuilding shares added to the downward move. The nation’s top steelmaker Posco shed 2.3 percent to a four-month low on concern it may overpay for Daewoo Shipbuilding and Marine Engineering.

State-owned Korea Development Bank and Korea Asset Management Corp. plan to sell a 50.4 percent stake in Daewoo Shipbuilding by the end of the year. Daewoo Shipbuilding retreated 2.3 percent.

The world’s largest shipbuilder Hyundai Heavy Industries lost 3.1 percent, the biggest drop in two weeks, on fears that slowing global economic growth may reduce demand for vessels.

STX Shipbuilding, owner of Europe’s largest shipbuilder Aker Yards ASA, fell 3.7 percent and Hyundai Mipo Dockyard, a unit of Hyundai Heavy, dropped 1.1 percent. Samsung Heavy Industries, the world’s second biggest shipyard, fell 0.3 percent.

Brokerage and auto issues were also dented. No. 1 brokerage Samsung Securities fell 2.6 percent and second-ranked carmaker Kia Motors lost 5.1 percent.

On Monday, U.S. stocks closed sharply down as financials weighed on the market. The Dow Jones industrial average tumbled 1.6 percent and the tech-dominated Nasdaq composite index declined 1.45 percent.

Yonhap, Bloomberg
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