ID :
203172
Wed, 08/24/2011 - 10:44
Auther :
Shortlink :
https://oananews.org//node/203172
The shortlink copeid
Seoul shares fall 1.23 pct on tech, financial losses
SEOUL, Aug. 24 (Yonhap) -- South Korean stocks closed 1.23 percent lower on Wednesday as the technology and financial sectors suffered sharp losses amid lingering market jitters over global economic uncertainties, analysts said. The local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) slumped 21.9 points to 1,754.78, reversing from the previous session's gain. Trading volume was heavy at 408 million shares worth 7.7 trillion won (US$7.1 billion), with losers outnumbering gainers 557 to 270.
"Program selling by retail investors weighed on the KOSPI. The fall basically mirrors weak investor sentiment and persistent market jitters over economic uncertainties," said Cho Byung-hyun, an analyst at Tong Yang Securities Inc.
Cho also said the downgrade on Japan's debt rating is likely to have limited impact on the market. Earlier in the day, Moody's Investors Service cut Japan's debt rating by one notch from Aa2 to Aa3, citing its debt and deficits.
"Even after the downgrade, Japan's rating remains high. Moreover, news on the Japanese economy is not completely unexpected. The cut is likely to pass as a one-off event," said Cho.
Tech issues, which together make up the KOSPI's largest sector by market cap, fell steeply on heavy institutional selling. Market bellwether Samsung Electronics fell 2.07 percent to 708,000 won and Hynix Semiconductor slumped 4.69 percent to 16,250 won.
Financial shares also finished bearish. KB Financial Group, the parent of the country's top lender, lost 4.12 percent to 40,700 won and No. 3 banking group Shinhan Financial Group sank 4.89 percent to 42,800 won.
Leading mobile carrier SK Telecom dropped 3.81 percent to 151,500 won following media reports its purchase of Hynix Semiconductor may be delayed.
In contrast, construction firms outperformed the market on hopes they will benefit from restoration efforts in Libya. Industry leader Hyundai Engineering & Construction rose 2.88 percent to 67,900 won and smaller Daewoo Engineering & Construction jumped 4.72 percent to 11,100 won.
"A resumption in stalled construction projects worth $7.4 billion as well as demand for restoration are likely to become huge opportunities for local builders," Lee Sun-il, an analyst at Shinhan Investment Corp., said in a report.
The local currency closed at 1,082.2 won against the greenback, down 4.2 won from Tuesday's close, due mainly to the stock market's retreat, dealers said.
Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasuries lost 0.06 percentage point to 3.46 percent and the return on the benchmark five-year government bonds also slipped 0.06 percentage point to 3.60 percent.
mil@yna.co.kr
The benchmark Korea Composite Stock Price Index (KOSPI) slumped 21.9 points to 1,754.78, reversing from the previous session's gain. Trading volume was heavy at 408 million shares worth 7.7 trillion won (US$7.1 billion), with losers outnumbering gainers 557 to 270.
"Program selling by retail investors weighed on the KOSPI. The fall basically mirrors weak investor sentiment and persistent market jitters over economic uncertainties," said Cho Byung-hyun, an analyst at Tong Yang Securities Inc.
Cho also said the downgrade on Japan's debt rating is likely to have limited impact on the market. Earlier in the day, Moody's Investors Service cut Japan's debt rating by one notch from Aa2 to Aa3, citing its debt and deficits.
"Even after the downgrade, Japan's rating remains high. Moreover, news on the Japanese economy is not completely unexpected. The cut is likely to pass as a one-off event," said Cho.
Tech issues, which together make up the KOSPI's largest sector by market cap, fell steeply on heavy institutional selling. Market bellwether Samsung Electronics fell 2.07 percent to 708,000 won and Hynix Semiconductor slumped 4.69 percent to 16,250 won.
Financial shares also finished bearish. KB Financial Group, the parent of the country's top lender, lost 4.12 percent to 40,700 won and No. 3 banking group Shinhan Financial Group sank 4.89 percent to 42,800 won.
Leading mobile carrier SK Telecom dropped 3.81 percent to 151,500 won following media reports its purchase of Hynix Semiconductor may be delayed.
In contrast, construction firms outperformed the market on hopes they will benefit from restoration efforts in Libya. Industry leader Hyundai Engineering & Construction rose 2.88 percent to 67,900 won and smaller Daewoo Engineering & Construction jumped 4.72 percent to 11,100 won.
"A resumption in stalled construction projects worth $7.4 billion as well as demand for restoration are likely to become huge opportunities for local builders," Lee Sun-il, an analyst at Shinhan Investment Corp., said in a report.
The local currency closed at 1,082.2 won against the greenback, down 4.2 won from Tuesday's close, due mainly to the stock market's retreat, dealers said.
Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasuries lost 0.06 percentage point to 3.46 percent and the return on the benchmark five-year government bonds also slipped 0.06 percentage point to 3.60 percent.
mil@yna.co.kr
