Market fails to snap out of losing streak
Published: 14 Jan. 2015, 20:54
The Seoul main bourse was able to remain above the 1,910 level on Wednesday, but barely, as the stock market continued to fall for the third consecutive day with foreign investors off-loading shares.
The benchmark Kospi lost 3.48 points or 0.18 percent to close at 1,913.66. It has been falling since Monday, which is a stark contrast to last week when in the last three days leading up to Friday, the market was on the rise.
Through Wednesday, the stock market lost 11 points or 0.6 percent compared to Friday.
Foreign investors net sold 186 billion won ($171 million) worth of stocks on Wednesday, bringing their total this week to nearly 326 billion won.
While other factors like falling international crude prices have been affecting the local stck market, Wednesday’s drop was largely due to foreign investors selling their holdings in Hyundai Motor Group’s affiliate Glovis.
On Tuesday, it was reported that Hyundai Motor Group Chairman Chung Mong-koo and his son Chung Eui-sun failed to sell their stakes in the logistics affiliate, which was considered a setback to the succession process.
Glovis stock continued to tumble for the second day. It hit the daily limit by declining 15 percent on Tuesday, then fell an additional 9 percent on Wednesday to close at 231,500 won.
Even Hyundai Motor’s stock declined, loosing 1.11 percent to close at 177,500 won. Hyundai Mobis, another affiliate of the automotive group that ranks fifth by market capitalization, saw a sharper drop of nearly 4 percent to 255,000 won.
Most of the blue chips on the Kospi retreated or remained the same.
Samsung Electronics was the only stock in the top five that gained, adding 0.5 percent to close at 1.34 million won.
Meanwhile, the nation’s sovereign bonds rose, pushing yields to record lows, before the central bank reviews policy at a meeting today amid calls for measures to revive Asia’s fourth-largest economy.
The yield on notes due December 2017 fell four basis points, or 0.04 percentage point, to 1.98 percent.
BY LEE HO-JEONG, BLOOMBERG [[email protected]]
The benchmark Kospi lost 3.48 points or 0.18 percent to close at 1,913.66. It has been falling since Monday, which is a stark contrast to last week when in the last three days leading up to Friday, the market was on the rise.
Through Wednesday, the stock market lost 11 points or 0.6 percent compared to Friday.
Foreign investors net sold 186 billion won ($171 million) worth of stocks on Wednesday, bringing their total this week to nearly 326 billion won.
While other factors like falling international crude prices have been affecting the local stck market, Wednesday’s drop was largely due to foreign investors selling their holdings in Hyundai Motor Group’s affiliate Glovis.
On Tuesday, it was reported that Hyundai Motor Group Chairman Chung Mong-koo and his son Chung Eui-sun failed to sell their stakes in the logistics affiliate, which was considered a setback to the succession process.
Glovis stock continued to tumble for the second day. It hit the daily limit by declining 15 percent on Tuesday, then fell an additional 9 percent on Wednesday to close at 231,500 won.
Even Hyundai Motor’s stock declined, loosing 1.11 percent to close at 177,500 won. Hyundai Mobis, another affiliate of the automotive group that ranks fifth by market capitalization, saw a sharper drop of nearly 4 percent to 255,000 won.
Most of the blue chips on the Kospi retreated or remained the same.
Samsung Electronics was the only stock in the top five that gained, adding 0.5 percent to close at 1.34 million won.
Meanwhile, the nation’s sovereign bonds rose, pushing yields to record lows, before the central bank reviews policy at a meeting today amid calls for measures to revive Asia’s fourth-largest economy.
The yield on notes due December 2017 fell four basis points, or 0.04 percentage point, to 1.98 percent.
BY LEE HO-JEONG, BLOOMBERG [[email protected]]
with the Korea JoongAng Daily
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