Weakening of yen takes its toll on Kospi
The benchmark Kospi retreated for the second consecutive day as foreign and institutional investors unloaded shares. The Kospi closed at 2,107.5, down 1.68 percent or 36 points from the previous trading day.Fears that the U.S. may raise its key interest rate within this year and Korean companies’ vulnerability to the weaker yen dampened investor sentiment in Seoul. The won fell 0.6 percent to 8.99 against the yen, amid speculation that Korean authorities will intervene to protect the nation’s overseas exports.
Losers outnumbered winners 609 to 213 on the Kospi.
Market bellwether Samsung Electronics lost 3.52 percent, or 48,000 won ($43.47), to 1.31 million won ($1,188). The nation’s top automaker Hyundai Motor retreated 1.87 percent to 157,000 won amid concerns over its export performance. Hyundai’s parts maker affiliate Hyundai Mobis also lost 0.66 percent to 225,500 won.
Steel maker Posco edged down 2.82 percent to 241,500 won after the Korea Investment Service (KIS) downgraded its subsidiaries’ credit rating. Naver, one of the leading web portals, decreased 2.09 percent to end at 608,000 won. Despite its upgraded credit rating by Moody’s, Shinhan Financial Group retreated 3.83 percent to 40,200 won largely affected by the fears that the U.S. may raise its key rate within this year.
Leading chipmaker SK Hynix nudged up 0.94 percent to 48,450 won, climbing to No. 2 in market cap. Samsung’s de facto holding company Cheil Industries, which almost hit the trading ceiling the previous day, gained 1.33 percent to 190,500 won.
South Korea’s exports probably fell in May, Bank of Korea Governor Lee Ju-yeol said Tuesday, while the Finance Ministry’s top currency official warned last month that the government has stepped up scrutiny of the yen’s slide. More than half of 300 exporters surveyed by the Korea Chamber of Commerce and Industry said they were affected by weakness in the Japanese currency.
Government bonds rose, with the yield on notes due September 2024 falling four basis points, or 0.04 percentage point, to 2.44 percent, Korea Exchange prices showed.
The won weakened 0.4 percent against the dollar to close at 1,105.57.
BY KIM HYUN-MIN [kim.hyunmin@joongang.co.kr]
with the Korea JoongAng Daily
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