Market slips after investors sell large firms
Korean shares closed lower yesterday as foreign and institutional investors locked in profits on large caps following the previous session’s surge. The benchmark Kospi slid 22.15 points, or 1.5 percent, to 1,454.50.“Investors dumped large-cap shares to take profits from Monday’s jump,” said Kim Sung-bong, an analyst at Samsung Securities, adding the momentum spurred by the mortgage bail-out plan in the United States was short-lived since it will take some time for the financial market to realize the benefit.
Large-cap shares plunged with market heavyweight Samsung Electronics sliding 1.3 percent to 536,000 won ($487) and its smaller rival LG Electronics falling 2.9 percent. The world’s leading computer chip maker Hynix Semiconductor dived 6.5 percent on news that its creditors will seek to revive talks on selling their controlling stake in the chipmaker.
Korea Exchange Bank, Hynix’s main creditor, said yesterday it will ask eight other financial institutions to approve a plan to sell their combined 36 percent stake in Hynix.
Shipyards and steel shares were also dented on worries over China’s sluggish economy. Samsung Heavy Industries slumped 3.5 percent and Hyundai Heavy Industries, the world’s top shipbuilder, skidded 3.1 percent. Top steelmaker Posco lost 3.8 percent.
Most financial shares were gloomy. Kookmin Bank lost 2.5 percent despite an announcement that it intends to merge with another financial holding group after it turns into a financial holding company. Shinhan Finance Holdings edged down 0.6 percent while Woori Finance Holdings gained 0.7 percent.
The shares in Eugene Investment and Securities Co., the brokerage arm of Eugene Group, gained sharply yesterday on a Yonhap News Agency report that the group plans to sell the brokerage. It rose 60 won, or 5.3 percent, to 1,200 won.
Both the group and the brokerage said in a regulatory filing later in the day that “the sales plan is in consideration but nothing has been confirmed.”
Eugene Group took over the brokerage, formerly Seoul Securities, in March 2007.
The brokerage posted 1.6 billion won of net loss in the three months to June.
Yonhap, Bloomberg
with the Korea JoongAng Daily
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