Bargain hunting on Kospi slows early fall

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Bargain hunting on Kospi slows early fall

Korean stocks fell 0.4 percent yesterday as investors unloaded tech and steel shares amid deepening concerns that the economy is fast heading into a recession.

The benchmark Kospi lost 4.45 points to 1,162.11. Volume was moderate at 369.75 million shares worth 3.9 trillion won ($2.81 billion), with gainers outpacing losers 467 to 340.

“The market got off to a weak start, affected by overnight pullbacks in U.S. stocks but it pared early losses as foreigners and institutions hunted for bargains,” said Lee Sun-yup, an analyst at Goodmorning Shinhan Securities.

Investor jitters deepened as many indicators are signaling that the economy is heading into its first recession in more than a decade. According to data unveiled earlier by the National Statistical Office, industrial output contracted 18.6 percent, the steepest fall since related data was compiled in 1970.

Tech giant Samsung Electronics also shed 2.11 percent to close at 488,000 won. Top mobile carrier SK Telecom fell 2.1 percent. Steel shares ended lower, with Posco, the world’s fourth-largest steelmaker, dropping 2.2 percent. Shipping companies added to the downward move. Industry leader Hanjin Shipping plunged 3.6 percent.

Hyundai Heavy Industries, the world’s biggest shipbuilder, rose 2.8 percent, to 200,000, the highest since Jan. 19. Its unit Hyundai Mipo Dockyard climbed 3.6 percent. Samsung Heavy Industries, the second-largest shipbuilder, added 0.7 percent. Hyundai Engineering and Construction gained 0.5 percent to the highest level since Jan. 14. Nomura Holdings raised its recommendation on the stock to “buy” from “neutral” in a note, citing the “rapid” growth in overseas power plant contracts and its “strong” housing brand name.

Of tech companies, second-ranked chipmaker Hynix Semiconductor was among the few marked gainers, soaring 13 percent. The rally comes after news that its rival, Toshiba of Japan, might sharply reduce investments this year, a move observers expect could ease oversupply that drove down chip prices and dented companies’ profitability. Major brokerage shares also gained ground, helping prevent the market from further declining. Leading brokerage Samsung Securities and Mirae Asset Securities both ended higher. Yonhap

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