South Korean stocks fell on Monday, continuing losses for a third consecutive session, as fears the global economy is slipping back into recession left investors hesitant to snap up some heavyweights despite their heavy recent losses. The Korea Composite Stock Price Index gave up early gains to finish down 1.96 percent at 1,710.70 points, its loweest close since July 8, 2010. KOSPI 200 September futures fell 0.81 percent or 1.8 points to 220.75. The KOSPI 200 spot index slid 3.83 points to 219.15.
The junior Kosdaq market finished down 1.84 percent at 465.90. "Auto, chemical and refinery issues that led the stock market's recent slides didn't experience aggressive buying as investors have cut back positions on exporters," said Yoo Kyung-ha, a market analyst at Dongbu Securities.
Analysts said investors had lost confidence and were awaiting a speech by US Fed Reserve Chairman Ben Bernanke due Friday for signs that could provide a boost to markets. The country's top automaker Hyundai Motor tumbled 5.3 percent and its affiliate Kia Motors plunged 5.6 percent. Foreign investors sold stocks for a fourth successive session, offloading a net 240 billion won ($220.7 million) worth, and individuals turned net sellers after two days of buying. Institutions purchased a net 287.2 billion won worth of stocks but sold shares in the chemical sector.
Crude oil refiners took another knock after recent sharp falls. S-Oil Corp, the country's No 3 crude oil refiner, dropped 8.3 percent and SK Innovation which owns the country's top refiner shed 7.7 percent. Shares in state utility firm Korea Gas Corp (KOGAS) jumped 6.3 percent as investors poured into defensive plays. "KOGAS's high dividend yields are considered attractive as well," Peter Han, a Daewoo Securities analyst said. Another state-run utility, Korea Electric Power Corp (KEPCO), also advanced 7 percent. Decliners outnumbered gainers by 568 to 279.
Comments
Comments are closed.