South Korean stocks fell sharply Friday as lack of market confidence in the global economy caused jittery foreign investors to offload holdings. The local currency fell against the U.S. dollar.
Starting the day on the plus side, the benchmark Korea Composite Stock Price Index soon lost ground and surrendered the psychologically important 1,900 mark in the afternoon before ending the day at 1,900.66, down 0.95 percent, or 18.17 points, from Thursday’s close.
Trading volume was moderate at 354.86 million shares worth 4.51 trillion won ($4.23 billion), with decliners outpacing advancers 466 to 355, and 59 standing pat.
The drop came as U.S. stocks remained effectively unchanged in overnight trading amid better economic data centered on industrial production and weekly jobless claims. On the other hand, concerns related to Greece’s financial health and overall weakening of the European economy caused worries among investors that could not be offset by hints that the U.S. Fed may extend its quantitative easing stimulus program into next year.
Private investors and institutions bought more shares than they sold, but foreigners who exert considerable sway in the bourse offloaded for the 11th straight trading session.
“Overall lack of confidence about the global economy as a whole caused foreign investors to maintain their selling stance that caused the sharp drop in the bourse,” said Lim Dong-rak, a researcher at Hanyang Securities Co.
He added uncertainties about third quarter earnings due out next week are also affecting the bourse.
Other market watchers said shaky economic fundamentals, compounded by the spread of the Ebola epidemic, are exerting negative pull on the KOSPI and stocks markets around the world.
Tech giant Samsung Electronics, the flagship company of Samsung Group, lost 2.33 percent to 1,089,000 won per share, with global appliance manufacturer LG Electronics surrendering 1.39 percent to
63,800 won. Memory chip giant SK hynix also gave up 2.22 percent to 44,100 won.
The country’s No. 1 carmaker, Hyundai Motor, again backtracked 3.57 percent to an annual low of 162,000 won, while its smaller affiliate, Kia Motors, ended unchanged at 53,300 won.
The carmaker’s shares have remained weak ever since the company and two other affiliates won the bid to purchase the headquarters of energy company KEPCO last month.
Shares of top steelmaker POSCO edged up 0.32 percent to 315,500 won. LG Chem, one of the largest producers of rechargeable batteries, gained 0.67 percent to 224,500 won ahead of its third-quarter earnings report next week.
The local currency ended at 1,065.9 won to the U.S. dollar, down 4.4 won from the previous session. (Yonhap News)
