Data from Q4 depresses Kospi trading
Seoul’s main bourse plummeted as oil prices fell and poor economic growth numbers were released Tuesday, which deterred foreign investors from risk-taking.The benchmark Kospi closed at 1,871.69, down 21.74 points, or 1.15 percent, from the previous trading day. The stock market started off weak and continued to fall as foreign investors continued their offloading spree for the 14th consecutive trading day.
Foreign and institutional investors sold 195.1 billion won ($161.9 million) and 130.3 billion won worth of stock, respectively.
Global oil prices fell nearly 6 percent and Korea’s economy was reported to have grown only 0.6 percent in the fourth quarter from the previous quarter. The number was half the 1.3 percent growth rate in the third quarter. Instability in neighboring Chinese markets only made things worse. China’s Shanghai index plummeted more than 6 percent on Tuesday.
Market bellwether Samsung Electronics lost 2.15 percent to 1,137,000 won and Hyundai Motors dropped 1.09 percent to 136,000 won. Samsung C&T and Samsung SDI fell 5.33 percent 14.73 percent each after Samsung SDI’s decision to sell its chemical assets to Lotte Group.
“Asian stock markets retreated due to the fear of falling oil prices and the U.S. Federal Reserve’s Federal Open Market Committee meeting that will be held this week,” said Lim Chae-soo, a researcher at KR Futures.
Korea wasn’t the only victim in Asia to the oil slide. Japan’s Nikkei and Taiwanese markets tumbled 2.35 percent and 0.83 percent, respectively.
The secondary Kosdaq closed at 678.85, down 2.58 points, or 0.38 percent, from the previous trading day.
Korea’s won fell for the first time in four days, weakening 0.8 percent to 1,204.20 per dollar. The currency’s 2.6 percent drop makes it Asia’s worst performer this year.
“Dollar-buying by offshore investors related to stock outflows are likely to continue for a while,” said Kim Dong-wook, a trader at Kookmin Bank.
Korea’s 10-year government bond yield dropped three basis points to 1.99 percent, and the three-year yield also fell two basis points to 1.60 percent, Korea Exchange Prices showed.
BY KIM YOUNG-NAM [kim.youngnam@joongang.co.kr]
with the Korea JoongAng Daily
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