Losses for major tech firms lead 2% drop
The electric board at Korea Exchange Bank headquarters points to the local currency’s loss of 12 won against the U.S. dollar. [YONHAP]
Korean shares closed 2.07 percent lower yesterday as investor sentiment was dented by gloomy corporate earnings outlooks and a slowing economy, analysts said.
The benchmark Kospi shed 23.83 points to 1,126.82. Volume was moderate at 314.95 million shares worth 3.73 trillion won ($2.72 billion), with losers outpacing winners 608 to 214.
Market leader Samsung Electronics and LG Electronics are slated to release their fourth-quarter earnings reports later this week. Industry heavyweight Samsung Electronics fell 2.3 percent to 464,000 won and its local rival LG Electronics lost 4 percent to 77,700 won. Panel maker LG Display dived 3.1 percent to 25,200 won.
Automakers finished weaker with top carmaker Hyundai Motor falling 2.5 percent to 42,950 won and its affiliate Kia Motors dropping 1.3 percent to 7,030 won. Hanwha Corp., rose 250 won, or 0.9 percent, to 27,150, taking its three-day gain to 15 percent. Hanwha Group is likely to give up on its attempt to buy Daewoo Shipbuilding and Marine Engineering Co., the Dong-A Ilbo newspaper reported, citing a Hanwha official it didn’t identify.
BNG Steel Co., a maker of steel sheets and bars, dropped 385 won, or 7.4 percent, to 4,815. The company posted a deficit of 57.4 billion won in 2008 on price declines and currency-related losses, compared to a 19.5 billion won profit the previous year. Human and Technology Co., which makes computer peripheral equipment, retreated 60 won, or 5.5 percent, to 1,035. The company said it incurred a 9.2 billion won loss related to currency derivatives.
The local currency ended at 1,374.5 won to the dollar, down 12 won from Monday’s close. Yonhap, Bloomberg
with the Korea JoongAng Daily
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