Seoul shares on Wednesday fell from an eight-month closing high in the previous session, tracking declines in global peers after minutes from the US Fed's March meeting suggested it was shying away from more stimulus measures. The Korea Composite Stock Price Index (KOSPI) dropped 1.5 percent to close at 2,018.61 points, its worst daily percentage fall since declining 3.4 percent on December 19, the day of Kim Jong-il's death.
"We are seeing a clear divide in performance between shares underpinned by solid fundamentals and those that have been buoyed by liquidity factors alone, with focus now set firmly on first quarter earnings" said Kyobo Securities analyst Kim Hyoung-ryoul. The Federal Reserve minutes showed policymakers, while noting signs of slightly stronger growth, remained focused on a still elevated jobless rate. It also suggested the appetite for further quantitative easing has waned significantly in light of the improving US economy.
Losses were amplified in late trade on institutional selling, with a net 406.3 billion won ($362.2 million) of shares sold during the day, the most in more than two months. Declining sectors were led by liquidity-dependent, high-beta stocks such as builders and shipyards. Samsung Engineering Co tumbled 5.3 percent, while Daewoo Shipbuilding & Marine Engineering slid 4.9 percent. Volatile brokerage issues also added weight, Woori Investment & Securities fell 3.8 percent, while Daewoo Securities shed 4.4 percent.
SK Telecom Co Ltd, the country's largest mobile carrier, lost 3.2 percent after POSCO sold 321 billion won ($286.1 million) worth of its shares in a block deal at a cut-price offer from Tuesday's close.
Tech-heavyweight Samsung Electronics Co Ltd touched yet another all-time high earlier in the session after a string of similar feats in recent sessions, but reversed gains to close 1.1 percent lower. Samsung Electronics will release its preliminary earnings guidance for January-March on Friday, with some analysts forecasting a profit of up to 5.5 trillion won ($4.9 billion), which would represent a quarterly record.
Automakers snapped a two-day rally after a strong start on Wednesday, tracking broad falls in the index to reverse gains. But they were seen supported by healthy sales in the recovering US car market, as Hyundai Motor Co edged 0.6 percent lower after touching an all-time high during morning trade, while KIA Motors Corp ended flat. Hyundai and KIA, the country's two biggest carmakers and leading auto exporters to the US, saw a 12.7 and 30.2 percent boost, respectively, in March US sales compared to a year earlier.
607.2 million shares exchanged hands on the main bourse, while losing shares outnumbered winners 693 to 153. The benchmark KOSPI 200 index fell 1.5 percent and the junior KOSDAQ index tumbled 2.5 percent.
Comments
Comments are closed.