Market continues slide on global jitters
August 26, 2010
Korean stocks finished 1.46 percent lower yesterday as a downbeat report on U.S. home sales renewed concerns about the global economy, dragging down blue-chip exporters, analysts said. The local currency fell against the U.S. dollar.
The benchmark Kospi sank 25.74 points to end at 1,734.79, extending a losing run for a fourth session. Trading volume was moderate at 340 million shares worth 4.66 trillion won ($3.89 billion), with losers trumping gainers 609 to 211.
“The U.S. real estate report caused jitters among investors that the global economy may stumble,” said Kim Hyoung-ryoul, an analyst for NH Investment & Securities. “Foreign and institutional selling was not quite substantial but any notable buying disappeared, which contributed to the fall in the key index.”
Industry data showed an unexpected plunge in U.S. home sales in July to a 15-year low, sending major U.S. stock market indices sharply lower on Tuesday.
Foreign investors switched to net sellers, snapping a five-session buying run, as they dumped a net 200.5 billion won worth of local stocks.
Losses were broad and deep across most sectors with shares in tech, financial firms and auto exporters being the hardest hit by the foreign sell-off.
Samsung Electronics finished at 772,000 won, down 1.4 percent, while LG Electronics skidded 2.96 percent to a one-month closing low of 98,500 won.
KB Financial Group retreated 1.36 percent to 47,200 won, and Hyundai Motor fell 0.74 percent to 134,500 won.
Commodity producers lost ground as the won’s depreciation against the U.S. dollar was expected to hurt profits. Korea Zinc fell 4.63 percent to 237,000 won.
Korea Exchange Bank rose 3.1 percent to 13,300 won on merger expectations.
KT rose 1 percent to 44,000 won as the company received more than 200,000 orders for the iPhone 4 as of yesterday.
Kumho Industrial retreated 15 percent to 3,540 won, the most since April 1. It said on Monday that it will cancel 84 percent of its common shares and 88 percent of its preferred shares.
The local currency closed at 1,196 won against the greenback, down 5 won from Tuesday’s close.
Yonhap, Bloomberg
August 26, 2010
Korean stocks finished 1.46 percent lower yesterday as a downbeat report on U.S. home sales renewed concerns about the global economy, dragging down blue-chip exporters, analysts said. The local currency fell against the U.S. dollar.
The benchmark Kospi sank 25.74 points to end at 1,734.79, extending a losing run for a fourth session. Trading volume was moderate at 340 million shares worth 4.66 trillion won ($3.89 billion), with losers trumping gainers 609 to 211.
“The U.S. real estate report caused jitters among investors that the global economy may stumble,” said Kim Hyoung-ryoul, an analyst for NH Investment & Securities. “Foreign and institutional selling was not quite substantial but any notable buying disappeared, which contributed to the fall in the key index.”
Industry data showed an unexpected plunge in U.S. home sales in July to a 15-year low, sending major U.S. stock market indices sharply lower on Tuesday.
Foreign investors switched to net sellers, snapping a five-session buying run, as they dumped a net 200.5 billion won worth of local stocks.
Losses were broad and deep across most sectors with shares in tech, financial firms and auto exporters being the hardest hit by the foreign sell-off.
Samsung Electronics finished at 772,000 won, down 1.4 percent, while LG Electronics skidded 2.96 percent to a one-month closing low of 98,500 won.
KB Financial Group retreated 1.36 percent to 47,200 won, and Hyundai Motor fell 0.74 percent to 134,500 won.
Commodity producers lost ground as the won’s depreciation against the U.S. dollar was expected to hurt profits. Korea Zinc fell 4.63 percent to 237,000 won.
Korea Exchange Bank rose 3.1 percent to 13,300 won on merger expectations.
KT rose 1 percent to 44,000 won as the company received more than 200,000 orders for the iPhone 4 as of yesterday.
Kumho Industrial retreated 15 percent to 3,540 won, the most since April 1. It said on Monday that it will cancel 84 percent of its common shares and 88 percent of its preferred shares.
The local currency closed at 1,196 won against the greenback, down 5 won from Tuesday’s close.
Yonhap, Bloomberg