South Korean stocks lost ground Thursday as weak U.S. economic data caused investors to re-evaluate overall market conditions. The local currency rose against the U.S. dollar.
Starting the day on the minus side, the benchmark Korea Composite Stock Price Index recouped some losses, yet ended at 1,918.83, down 0.37 percent, or 7.08 points, from Wednesday’s close
Trading volume was moderate at 300.98 million shares worth 4.42 trillion won ($4.17 billion), with decliners outpacing advancers 469 to 341, and 67 staying pat.
Market watchers said the overnight drop on Wall Street triggered by disappointing retail figures, falling producer prices and mild inflationary pressures caused many jittery investors to shed holdings.
Foreign investors offloaded for the 10th straight trading session, with private investors following suit by selling more shares then they bought. Only institutions maintained a net buying stance.
Observers added that shaky economic fundamentals ahead of third quarter earnings reports were also weighing down the KOSPI, which had fallen a total of eight trading sessions out of 10 this month.
“Weak economic data coming out of the United States is causing the bourse to fall, with the situation exacerbated by lack of confidence about the future,” said Kang Hyun-gie, an analyst at I’M Securities & Investment Co.
He added that weak economic fundamentals all across the globe could continue to exert negative influence on the market down the line.
Tech giant Samsung Electronics, the flagship company of Samsung Group, lost 0.89 percent to 1,115,000 won per share, with global appliance manufacturer LG Electronics surrendering 0.77 percent to 64,700 won. Memory chip giant SK hynix, on the other hand, jumped 3.92 percent to 45,100 won.
The country‘s No. 1 carmaker, Hyundai Motor, again backtracked 4 percent to 168,000 won, while its smaller affiliate, Kia Motors, lost 3.09 percent to 53,300 won. Hyundai fell to an all-year low of 165,500 won during the day before making a comeback.
The carmaker’s shares have remained weak ever since the company and two other affiliates won the bid to purchase the site of the headquarters of energy company KEPCO for an astronomical sum of 10.55 trillion won last month.
The stock price of steelmaker POSCO was up 1.13 percent to 314,500 won, while LG Chem, one of the largest producers of rechargeable batteries, fell 0.45 percent to 223,000 won. The local currency ended at 1,061.5 won to the U.S. dollar, up 1.6 won from the previous session. (Yonhap)
