Seoul shares fell for a second day on Friday, posting their worst daily percentage loss since the global financial crisis in late 2008, as fears grew over a possible US recession and the lack of a breakthrough in the euro zone fiscal crisis. South Korean stocks, which had been among Asia's best performing over the past year until the recent global market turmoil, bore the brunt of heavy selloffs again on Friday, as investors rushed to lock in profits from outperformers.
The Korea Composite Stock Price Index (KOSPI) sank 6.22 percent to finish at 1,744.88 points, its biggest daily percentage loss since November 2008. The index fell 2.7 percent on the week, erasing gains it earned this week to return to the previous week's level. It was the biggest loser among major Asian indices, with the MSCI index of Asia-Pacific stocks outside Japan shedding 3.7 percent. The volatility index on the KOSPI 200 also jumped 32 percent to its highest since August 11 as expectations were dashed that shares would recoup recent losses.
Hyundai Motor, which hit record highs in June, tumbled 11 percent, and LG Chem, which also saw its life-time highs in April, plunged by the daily limit of 15 percent. The KOSPI 200 September futures fell 6.31 percent to 222.55 points and the KOSPI 200 spot index dropped 6.43 percent to 222.98. The junior Kosdaq market finished down 6.53 percent at 474.65.
Comments
Comments are closed.