Retail investors’ selling spree hits Kospi
The Kospi dipped Tuesday after a selling spree led by retail investors.Airlines, display panels and securities shares dropped while insurers and semiconductor shares advanced slightly.
Chip maker SK Hynix gained 0.31 percent to 48,000 won ($45.80) and Samsung Life Insurance added 1.75 percent to end at 116,000 won. Top airline Korean Air plunged 4.21 percent to 42,100 won. LG Display lost 2.91 percent to 30,000 won and Samsung Securities fell 4.52 percent to 61,200 won.
Market bellwether Samsung Electronics advanced 0.89 percent to 1,362,000 won. Hyundai Motor, No. 2 in market cap and the nation’s top automaker, retreated 1.54 percent to 160,000 won. Korea Electric Power Corporation (Kepco) lost 3.09 percent to end at 47,000 won. Cheil Industries, the de facto holding company of Samsung, soared 14.98 percent to finish at 188,000 won.
Korea’s won weakened the most in 11 weeks as the dollar strengthened and the central bank chief said the nation’s growth is facing increasing uncertainties. The won rose 1 percent to close at 1,101.05 a dollar in Seoul.
Exports probably declined in May due to cheaper oil prices and a delay in the recovery of global trade, Bank of Korea Governor Lee Ju-yeol said Tuesday at a meeting with economists.
“Worries about exports and the won’s relative strength have been in place for a while,” said Son Eun-jeong, a Seoul-based currency analyst at Woori Futures. “These concerns are likely to limit any gains in the won.”
Global demand remains weak and sluggish exports have had a big impact on South Korea’s economy, BOK’s Lee said.
The monetary authority will consider whether incoming economic indicators are in line with its forecasts and will also take household debt into consideration in formulating policy, Lee said.
The central bank next meets on June 11 after keeping its benchmark rate unchanged at 1.75 percent on May 15.
The yield on notes due December 2017 fell three basis points, or 0.03 percentage point, to 1.85 percent, Korea Exchange prices showed. The 10-year yield was steady at 2.49 percent.
BY KIM HYUN-MIN, BLOOMBERG [kim.hyunmin@joongang.co.kr]
with the Korea JoongAng Daily
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