Stocks plummet as reality of outbreak sinks in
Stocks plummeted on Monday to extend the losing streak to a third session as concern over the coronavirus outbreak deepened. The won tumbled to its lowest level against the dollar in six months.The Kospi fell 83.8 points, or 3.87 percent, to close at 2,079.04, the lowest since Dec. 5 last year. Trading volume was high at 939 million shares worth 9.1 trillion won ($7.5 billion), with losers far outnumbering gainers 846 to 49.
The government raised its alert to the highest level against Covid-19, the official name of the new coronavirus. The country also reported one more death from the virus, bringing the death toll to seven.
“The sharp increase in the number of Covid-19 patients here weighed on investor sentiment,” said Seo Sang-young, a researcher at Kiwoom Securities.
“The weak purchasing managers’ index from the United States also raised worries of a global economic slowdown.”
Foreigners dumped a net 782 billion won, while institutions bought a net 192 billion won. Individuals scooped up a net 607 billion won.
Large cap shares lost ground across the board.
Samsung Electronics plunged 4.05 percent to 56,800 won, and LG Electronics decreased 4.24 percent to 63,300 won. Chipmaker SK hynix shed 3.4 percent to 99,500 won.
Hyundai Motor shed 4.3 percent to 122,500 won, and Kia Motors lost 3.62 percent to 38,600 won. Auto parts maker Hyundai Mobis lost 4.16 percent to 219,000 won.
Stocks of food manufacturers were among the bright spots as demand for ready-to-eat products is expected to rise, with Ottogi climbing 6.25 percent to 544,000 won.
CJ Seafood rose 29.88 percent to 3,645 won.
The local currency closed at 1,220.20 won against the greenback, up 11 won from the previous session’s close.
This was the lowest figure since 1,222.20 won posted on Aug. 13 last year, when the trade spat between Washington and Beijing escalated.
The secondary Kosdaq was down 28.7 points, or 4.3 percent, to close at 639.29.
Bond prices, which move inversely to yields, close lower. The yield on three-year bonds lost 4.4 basis points to 1.137 percent, while the return on the benchmark 10-year government bond shed 4.2 basis points to reach 1.47 percent.
BY KANG JAE-EUN, YONHAP [kang.jaeeun@joongnag.co.kr]
with the Korea JoongAng Daily
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