Samsung Securities forecasts minus growthThe main Korean market, despite net buying from foreign and retail investors, was offset by massive program selling that appeared in the last minute.
With the market in retreat, the winning streak that lasted for four trading days ended. The benchmark Kospi dipped 17.45 points, or 1.6 percent, to close at 1,058.62. Traded volume totaled at 620 million shares worth 4.6 trillion won ($3.1 billion). Losers outnumbered winners by 454 to 373.
Lim Dong-min, an analyst at Dongbu Securities, said that although the U.S. stock market was up Friday, good for the Korean market, institutional investors sold their blue chips due to lingering uncertainty.
Following foreign brokerages, Samsung Securities forecast Korea would have minus 0.2 percent growth next year, the first minus-growth forecast for a local financial institution - much less even than Samsung Economic Research Institute’s expectation of 3.2 percent, which has been recently lowered from the earlier 3.6 percent.
Additionally a government report that showed exports were sharply falling also added to the market’s late turnaround.
Many blue chips ended in the red especially with steelmaker, financial, energy and automaker shares retreating sharply. Posco, the biggest steel manufacturer, saw its shares retreat 1.9 percent to 333,500 won. Hyundai Steel lost 2.2 percent to 32,200 won and Dongkuk Steel Mill dipped 1.3 percent to 22,759 won.
Shinhan Financial Group fell 3.2 percent to 29,500 won. KB Financial Group slumped 3.9 percent to 29,000 won. Woori Financial Group plunged 4.2 percent to 6,820 won. Korea Exchange Bank stepped back 2.7 percent to close at 7,010 won. SK Energy shares were down 1.1 percent to 67,200 won and Hyundai Motor shares fell 1.2 percent to 41,000 won.
Heavy machinery shares, however, in an effort to recover recent loss, went up including Doosan Heavy Industries, which gained 4.5 percent to 55,000 won.
The secondary market Kosdaq continued its upbeat rally for the fifth consecutive trading day, gaining 0.72 points or 0.2 percent to close at 308.20. Retail investors were credited with marginal increase on the tech-heavy Kosdaq.
By Lee Ho-jeong Staff Reporter [email@example.com]