Seoul shares down

31 Oct, 2009

Seoul shares slipped on Friday, reversing from an opening gain of 1.2 percent despite a strong set of domestic economic data as investors grew more cautious about the fourth-quarter outlook. Autos and tech counters weighed. The Korea Composite Stock Price Index (KOSPI) shed 0.33 percent to finish at 1,580.69, falling for a fourth session.
Institutions were lead sellers, offloading a net 438 billion won worth of stocks, while foreign investors picked up a net 128 billion won. Samsung Electronics rose 0.7 percent after the world's No 1 memory chip maker reported a record quarterly net profit. But shares shed early gains in a volatile session amid concerns that earnings momentum would weaken in the fourth quarter.
Carmakers also retreated, with Hyundai Motor down 4.78 percent and Kia Motors shedding 1.1 percent. Some key technology issues also declined, with LG Display, the world's No 2 maker of flat panels, losing 1.54 percent and Hynix Semiconductor, the world's No 2 memory chip maker, down 1.9 percent. KB Financial Group fell 1.51 percent after the company posted a bigger-than-expected drop in quarterly earnings, dented by provisioning costs and a slow recovery in interest margins.
Other banking issues also retreated, with Shinhan Financial Group losing 1.81 percent. Shipbuilders rose across the board, with Daewoo Shipbuilding & Marine Engineering advancing 2.56 percent on market talk it was likely to win a $300 million order from Angolan state-owned oil company Sonangol for five tankers. A source with knowledge of the deal confirmed with Reuters that the South Korean shipbuilder was in talks with the Angolan company.

Read Comments