Market cautious ahead of U.S. bank rescue
Korean stocks closed 0.32 percent lower yesterday as investors took a breather ahead of an announcement about a U.S. bank bailout plan.Reversing earlier gains, the benchmark Kospi declined 3.82 points to 1,198.87. Volume was moderate at 461.8 million shares worth 4.07 trillion won ($2.94 billion), but gainers outnumbered losers 423 to 391.
“Investors turned cautious ahead of an imminent announcement of a U.S. bank rescue plan and the passage of the economic stimulus package in the Senate,” said analyst Lee Sun-yup of Goodmorning Shinhan Securities. “Foreigners took profits, viewing the 1,200-point as a resistance level.”
The key stock index started stronger, shrugging off overnight falls in U.S. markets. But in the morning session, the Kospi turned lower as foreigners extended their sales of Seoul stocks, ending a buying spree of nine straight sessions. They sold a net 216.2 billion won worth of local stocks on the main bourse.
U.S. Treasury Secretary Timothy Geithner on Tuesday plans to unveil a rescue plan to shore up the beleaguered banking system after a one-day delay.
Large caps traded in negative territory. Market leader Samsung Electronics fell 1.3 percent to 520,000 won and top steelmaker Posco shed 0.9 percent. Doosan Heavy Industry, a leading shipbuilder, surged 3.9 percent, while the world’s largest shipbuilder, Hyundai Heavy Industries, shed 2.2 percent.
But chip giant Hynix Semiconductor rose 1.9 percent on expectations for recovery of the chipmaking industry. Ssangyong Motor, which won the court’s approval for bankruptcy protection last week, jumped nearly by the daily limit of 15 percent.
KB Financial Group, the nation’s biggest, advanced 0.4 percent, Shinhan Finance Holdings picked up 1.2 percent and Woori Finance Holdings edged up 1 percent. NHN, an operator of the country’s largest portal Naver, soared 3.2 percent after it said in a regulatory filing that it plans to acquire Wingbus, an Internet travel site.
Separately, Morgan Stanley was quoted by Bloomberg as saying that it may revise down Korea’s 2009 economic growth forecast again because of the country’s slowing export growth. The brokerage predicted on Jan. 22 that Korea’s economy may contract 2.8 percent this year. Yonhap
with the Korea JoongAng Daily
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