The Kospi closes down as investors cash in
Korean stocks closed lower yesterday as retail investors sold local stocks to lock in profits following the key stock index’s recent gains, analysts said. The local currency inched up against the U.S. dollar.Reversing earlier gains, the benchmark Kospi declined 7.57 points, or 0.63 percent, to 1,202.69. Volume was moderate at 469 million shares worth 4.84 trillion won ($3.5 billion), with gainers outpacing losers 472 to 339. “Retail investors dumped shares in a bid to take profits following the broader market’s recent rally. Hopes for the passage of a U.S. economic stimulus package plan in the Senate was widely factored into the market,” said Park Suk-hyun, an analyst at Eugene Investment and Securities Co.
The Kospi started stronger, mirroring rises in the U.S. markets, which were lifted by rising expectations for the passage of a stimulus package in the Senate despite dismal job market readings.
But investor profit-taking and lingering concerns over the deepening economic slump turned the Kospi lower in the morning session, though foreign investors scooped up a net 45.6 billion won worth of local stocks, continuing their bullish run for the ninth straight session. On Friday, the Seoul bourse breached the 1,200-point level for the first time in about a month, helped by a buying spree of offshore investors.
Tech shares traded in negative territory. Market leader Samsung Electronics fell 3.3 percent to 527,000 won and consumer electronics giant LG Electronics shed 2.44 percent to 76,100 won. Chip giant Hynix Semiconductor gained 0.75 percent to 9,450 won after announcing that it has developed the world’s first 1-gigabit dynamic random access memory chip using 44-nanometer technology.
Automakers also lost ground. Hyundai Motor fell 3 percent to 51,700 won. Ssangyong Motor fell by the daily limit of 15 percent to 1,130 won on the first day of trading since shares of the country’s smallest automaker were suspended last month due to its filing for court receivership.
Financial shares gained ground, however, shrugging off the announcement by Moody’s Investors Service that it was downgrading the credit ratings of eight Korean banks. KB Financial Group added 0.56 percent to 35,750 won and its rival Shinhan Financial Group rose 0.34 percent to 29,350 won. Yonhap
with the Korea JoongAng Daily
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