Massive sell-off triggers Kospi’s decline
The board at the Korea Exchange in downtown Seoul flashes the closing price of the Korean won against the U.S. dollar. [YONHAP]
Meanwhile, overseas investors extended their net selling on the local market.
A government report that Korean exports had dropped 17 percent in February, the fourth straight monthly decline, contributed to the market woes.
“Korea’s key exporters are curtailing production because of poor global demand,” said Kee Ho-sam, a fund manager at UBS Hana Asset Management Co., which oversees the equivalent of $11 billion in assets. “We’re just taking a wait-and-see stance toward the market as a whole.”
Large-cap shares fell across the board, with market heavyweight Samsung Electronics leading the Kospi’s decline. The memory chip giant lost 3.14 percent to close at 462,000 won. Top shipbuilder Hyundai Heavy Industries sank 6.2 percent to 166,500 won, its lowest close since Dec. 5, due to shrinking overseas orders. Contracts, including those for marine engines, fell to $863 million in January from $1.86 billion a year earlier, according to the regulatory filing made by the shipbuilder last week. Dongkuk Steel Mill Co., Korea’s No. 3 steelmaker, sank 6.1 percent as it cut prices.
Hyundai E&C inched down 0.39 percent to 51,300 won, even after reporting it had clinched a $47.6 million deal to build a natural gas plant in eastern Saudi Arabia.
Banks also closed significantly lower. Woori Finance Holdings fell 6.22 percent to 5,880 won. KB Financial Group, owner of the country’s largest lender, plunged 4.42 percent to 28,100 won. Yonhap, Bloomberg
with the Korea JoongAng Daily
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