Both markets decline as tech shares are sold
Seoul markets closed lower yesterday as institutions dumped tech shares, taking a cue from an overnight plunge in U.S. tech stocks.The Kospi dropped 22.65 points, or 1.64 percent, to 1,360.56.
“The fundamental problem lies in weak investor sentiment as corporate quarterly earnings fall short of market expectations and the won remains strong against the dollar,” said Kim Young-gak, an analyst at Hyundai Securities.
Most stocks finished lower, with tech issues leading the fall, following disappointing performance reports of U.S. technology shares such as International Business Machines (IBM) and Apple Computer.
Samsung Electronics fell for the third day, losing 1.7 percent before closing at 585,000 won ($625). Hynix Semiconductor fell 4.9 percent following reports that creditors may sell a portion of their shares this year to recoup their investments and LG.Philips LCD went down 1.5 percent.
Bank shares were also weak. Kookmin Bank fell 2.8 percent, Shinhan Financial Group dropped 1.7 percent, Woori Financial Holdings lost 2.3 percent and Hana Financial Group fell 0.8 percent.
Hyundai Motor lost 1.5 percent despite the end of its strike. Its affiliate, Kia Motors, plunged 4.1 percent.
Doosan Heavy Industries declined 3.7 percent after a Seoul court ruled the firm must pay about 1,270 insurance companies in the U.K., Norway, Japan and other nations for an engine defect that grounded a tanker near the Suez Canal in 2003.
Volume was moderate at 216.9 million shares worth 2.9 trillion won with losers dominating winners, 543 to 89.
The junior Kosdaq fell 13.43 points, or 2.3 percent, to 583.62, on strong institutional selling. Advancers trailed decliners, 172 to 760. Trade volume was 650.6 million shares worth 1.7 trillion won.
By Wohn Dong-hee Staff Writer wohn@joongang.co.kr
with the Korea JoongAng Daily
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