Slow market prompts investors to dump stocks
The benchmark Kospi fell 3.27 points, or 0.15 percent, to close at 2,453.77. Trade volume was moderate at 6.23 trillion won ($5.84 billion).
Tracking overnight gains on Wall Street, the local market opened higher on the back of eased concerns over further escalation of violence in Syria.
The Chinese statistics bureau also announced Tuesday the country’s economy grew 6.8 percent in the first quarter, topping expectations.
But heavy sell-offs by foreign investors pared earlier gains.
Foreign investors sold a net 274.5 billion won worth of local stocks. This offset buying by retailers and institutions, who each bought a net 216.3 billion won and 52.3 billion won worth of shares.
Large-cap stocks drifted lower across the board. Market bellwether Samsung Electronics fell 0.72 percent to 2,499,000 won, and SK Hynix decreased 1.43 percent to 82,800 won.
Bio shares tumbled, dragging down the index. Celltrion, a major pharmaceutical firm, shed 1.86 percent to 290,000 won, and Samsung BioLogics, Samsung’s health care unit, tumbled 2.82 percent to 551,000 won.
Steelmakers and chemicals, however, traded bullish as investors picked up bargains following losses in the previous session. Posco grew 2.46 percent to 333,000 won, and LG Chem surged 0.96 percent to 368,500 won.
Hyundai Motor rallied 2.94 percent to 157,500 won after industry insiders said that U.S. activist hedge fund Elliott Advisors, which holds around $1 billion worth of stocks in three major affiliates, supported the automaker’s reorganization plans as a way to improve corporate governance.
Hyundai’s affiliates were also buoyed by the news. Hyundai Mobis rose 1.22 percent to 248,500 won, and Kia Motors added 0.32 percent to 31,450 won.
The secondary Kosdaq climbed 4.33 points, or 0.48 percent, to 901.22. It was the first time in 50 sessions that the tech-heavy index crossed over the 900 mark, with IT shares leading the gains.
Individuals and foreigners were net buyers, purchasing 14.7 billion won and 9.6 billion won each. Institutions sold a net 35.8 billion won.
The local currency closed at 1,067 won against the U.S. dollar, down 7.0 won from the previous session’s close.
Bond prices ended lower. The yield on three-year bonds rose 0.9 basis points to 2.18 percent, while the return on 10-year government bonds rose 1.1 basis points to 2.64 percent.
BY KIM EUN-JIN, YONHAP [kim.eunjin1@joongang.co.kr]
with the Korea JoongAng Daily
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