Likely Fed rate hike puts off investors
Atlanta Fed President Dennis Lockhart said Tuesday that the Federal Open Market Committee could move on rates in June if warranted, though he is not leaning in either direction at this point. San Francisco Fed President John Williams says that he would support a rate hike next month provided the U.S. economy stayed on track.
The benchmark Kospi closed at 1,976.71, up 9.70 points or 0.49 percent from the previous trading day. Foreign and retail investors bought shares while institution investors offloaded a whopping 490 billion won worth of shares.
Most sectors were weak.
Steel and metal tumbled 4 percent, the medical precision and construction industry followed with a 3 percent fall. Electronics gained 1.3 percent.
Among large caps Samsung Electronics continued its rally for three days and advanced 2.30 percent to 1,290,000 won. Samsung C&T nudged up 0.39 percent and Samsung Life Insurance stood flat.
Steelmakers Posco declined 4.57 percent to 219,500 won and Hyundai Steel shrank 6.08 percent to 57,200 won.
Among construction shares, Hyundai Engineering & Construction fell 5.43 percent to 36,600 won, Daelim lost 6.40 percent to 83,300 won and Daewoo Engineering & Construction edged down 0.83 percent to 6,010 won.
The secondary Kosdaq fell 4.49 points or 0.64 percent to close at 694.17. Paradise Group, which operates casinos strengthened 4.83 percent to 18,450 won as the casino’s revenue grew 9.4 percent year on year in April.
Korea’s won dropped the most in four months. The won weakened 1.2 percent before the Bank of Korea releases the minutes of its last policy meeting.
BY KIM JEE-HEE, BLOOMBERG [kim.jeehee@joongang.co.kr]
with the Korea JoongAng Daily
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