Large caps lead market to 18-month low
Korean stocks fell to a 18-month low yesterday.The benchmark Kospi lost 7.29 points, or 0.52 percent, dropping to 1,407.14.
Volume was moderate at 366.87 million shares worth 5.43 trillion won ($4.79 billion), with losers outpacing gainers, 539 to 209.
Most large-cap shares ended sharply lower, with financial in the lead.
Financials retreated after state-run Korea Development Bank said that it was in talks over a possible consortium investment in troubled U.S. bank Lehman Brothers.
Hana Financial Group closed at 37,000 won, down 2.6 percent, and Woori Finance Holdings tumbled 6.3 percent to close at 12,600 won.
Brokerage shares were also dented amid overall gloomy outlooks for stock markets. Industry leader Samsung Securities lost 1.79 percent to 55,000 won, while Daishin Securities fell 3.6 percent to 16,300 won.
Other large-cap shares ended in the negative terrain. Hanjin Shipping, the No. 1 shipper by sales, plunged 10.1 percent to close at 21,500 won on concerns that its business could suffer setbacks from a global economic slowdown. Smaller Korea Line fell 12.7 percent to 141,500 won.
Tech and steel shares, however, closed higher, preventing the index from losing further ground. Tech bellwether Samsung Electronics jumped 2.2 percent to 517,000 won, while steelmaking giant Posco gained 1.7 percent to 483,500 won.
Kangwon Land, which runs the nation’s only casino open to locals, retreated 2,800 won, or 15 percent, to 15,950. Citigroup cut its recommendation to “sell” from “hold,” in a report, citing the government’s plan to impose higher taxes on Kangwon Land. Woori Investment and Securities cut its rating to “hold” from “buy,” according to a separate report.
Korean Air Lines, the nation’s biggest carrier, lost 2,000 won, or 6.1 percent, to 31,000. UBS AG cut its 12-month price estimate by 9 percent to 30,000 won, in a report, citing a weakening currency.
KT&G, Korea’s biggest tobacco company, rose 4,200 won, or 4.6 percent, to a record 96,500. The company is a beneficiary of a weakening won, while it may also sell its holdings in cable news channel YTN, Daewoo Securities said in a note.
Yonhap, Bloomberg
with the Korea JoongAng Daily
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