Market slumps for second straight session
The Korean market continued to fall for a second day due to a weakening yen caused by the Bank of Japan’s announcement Friday that it would expand its monetary base.
The benchmark Kospi plunged 17.78 points, or 0.91 percent, to 1,935.19 points.
Hyundai Motor relinquished its second place ranking by market capitalization to SK Hynix. The automobile company dropped 3.12 percent to 155,000 won ($144). SK Hynix, the world’s leading memory chip manufacturer, fell 1.25 percent to 47,450 won.
Meanwhile, Hyundai affiliate Kia Motors inched down 0.2 percent to 49,100 won, while auto parts maker Hyundai Mobis dropped 0.42 percent to 239,000 won.
The market’s leader was no exception to the wave of large-cap losses. Samsung Electronics declined 1.46 percent to 1.22 million won. Rival LG Electronics climbed 0.15 percent to 65,300 won.
LG Chem plunged 5.79 percent to 179,000 won, and Lotte Chemical fell 2.12 percent to 138,500 won.
Posco dropped 3.78 percent to 292,500 won. Rival Hyundai Steel flopped 6.03 percent to 62,300 won.
Amore Pacific, which soared more than 5 percent the previous day, lost 2.56 percent to 2.36 million won. Its holdings company, Amore G, also fell 0.24 percent to 1.25 million won.
As for portal sites, Naver added 0.27 percent to 751,000 won while Daum Kakao also advanced 0.35 percent to 142,500 won.
The won appreciated to 1,076.5 to the dollar.
“Investor sentiment isn’t stable, and we’re seeing dollar bids whenever the won pares losses,” said Ryoo Hyun-jung, chief currency dealer at Citibank Korea. “The dollar-won rate can reach 1,090 within the year, and beyond that if the dollar-yen moves above 115.”
One-month implied volatility in the won, a gauge of expected swings used to price options, advanced 26 basis points, or 0.26 percentage point, to 8.77 percent.
The yield on the 2.75 percent government notes due June 2017 declined two basis points to 2.1 percent, which is the lowest level this year, and the least for a three-year sovereign security in more than 10 years.
BY KIM EUN-JI, BLOOMBERG [email@example.com]
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