Market stumbles as foreign buying ends

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Market stumbles as foreign buying ends

Korean stocks slipped after U.S. Federal Reserve Chairman Ben S. Bernanke said asset purchases are not on a preset course and the International Monetary Fund said risks are rising for slower growth in China.

The benchmark Kospi ended at 1,875.48, down 0.64 percent.

“Bernanke’s testimony was in line with expectations and what he has been saying over the past week or two,” said Binay Chandgothia, a Hong Kong-based portfolio manager at Principal Global Investors, which manages $250 billion globally. China’s leadership “seems to be accepting a lower trajectory of growth and they don’t look like [they] will jump in and take short-term measures.”

Foreign investors ended their six-day buying rally and dumped 113.4 billion won ($101 million) worth of local shares, while retail investors scooped up 115.4 billion won and institutional investors 400 million won.

Samsung Electronics shed 2.13 percent to close at 1,292,000 won.

Hyundai Motor rose 0.91 percent and Kia Motors finished up 1.84 percent.

Korea Electric Power Corporation rose 3.39 percent and SK hynix gained 2.l percent.

Shares of Hyundai Heavy Industries, LG Chem and Shinhan Financial Group dipped 1 percent.

The government’s Wednesday announcement to boost the tourism industry increased shares of Hana Tour (4.29 percent) and local casino operator GKL (3.7 percent).

LG Display dropped 3.06 percent to close at 26,950 as investors sold off the panel maker’s shares on slowing demand for televisions.

LG’s net income, excluding minority interest, was 105.7 billion won in the second quarter compared with a 111.2 billion won loss a year earlier, the Seoul-based company said today.

“Demand for personal computers and TVs, which account for about 70 percent of the total display market, is low,” Hwang Joon-ho, an analyst at Daewoo Securities said before the earnings release. “Growth for high-margin devices, including smartphones and TVs, will remain slow.”

The Korean won depreciated 4.7 won against the greenback and finished at 1,126.3.

BY KIM MI-JU, BLOOMBERG [mijukim@joongang.co.kr]

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