Shares fall amid global market worries
Korean shares fell due to negative signs in other markets, including China, where the Shanghai composite index at one point dropped more than 3 percent on Monday.The benchmark Kospi closed at 1,991.97, down 37.02 points, or 1.82 percent, from the previous trading day. Foreign investors offloaded 538.7 billion won ($465.6 million) in shares.
Retail and institutional investors bought 359.8 billion won and 34.8 billion won in shares, respectively. The Kospi fell 1.9 percent in November.
Large cap shares were generally weak on Monday, losing 1.9 percent total. By industry, electronics and insurance lost 2.8 percent and 2.5 percent, respectively. Market bellwether Samsung slid 3.24 percent to 1,284,000 won. The nation’s industrial giant, Samsung C&T, lost 3.95 percent, down to 146,000 won, while Samsung Life Insurance weakened 2.83 percent to 103,000 won.
The nation’s largest automaker, Hyundai Motor, dropped 2.32 percent to 147,500 won, and SK fell 2.17 percent to 270,000 won.
Leading tobacco company KT&G, meanwhile, gained 0.94 percent to reach 107,000 won.
The secondary Kosdaq closed at 688.38, down 5.83 points, or 0.84 percent, from the previous trading day.
The won declined for a third consecutive day as a sell-off in China’s stock market deterred risk-taking. The won weakened 0.4 percent to close at 1,158.10 to the dollar in Seoul.
Government bonds rose, with the 10-year yield falling two basis points to 2.25 percent, Korea Exchange prices showed. The three-year yield declined one basis point to 1.79 percent.
Korea’s factory output rose 1.5 percent in October from a year earlier, official figures showed Monday. The report came a day before data that is forecast to show that exports likely fell 9 percent in November, shrinking for the 11th straight month.
“Local markets are reacting to moves in Chinese markets, and risk-taking is restrained,” said Park Dae Bong, a senior currency trader at Nonghyup Bank in Seoul. “The won will also face weakening pressure as investors prefer to hold dollars before key external events in the coming weeks, including the U.S. monetary policy review.”
BY KIM YOUNG-NAM, BLOOMBERG [kim.youngnam@joongang.co.kr]
with the Korea JoongAng Daily
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