South Korean stocks finished 0.39 percent lower on Wednesday after a sharp gain in the previous session and Wall Street’s retreat, analysts said. The local currency fell against the U.S. dollar.
The benchmark KOSPI lost 8.02 points to close at 2,031.74. Trading volume was moderate at 426 million shares worth 4.99 trillion won ($4.39 billion) with losers outpacing gainers 467 to 340. The local currency finished at 1,135.40 won to the greenback, down 1.2 won from Tuesday’s close, on a bearish stock market.
“Investors are tempted to lock in part of gains seen in the past few sessions,” said Lee Kyung-soo, an analyst at Shinyoung Securities. “Some economic data from the U.S. also dampened investor sentiment.”
The analyst said the market will likely move upward on the back of improving economic fundamentals and ample liquidity.
Federal Reserve chief Ben Bernanke said Monday that the U.S. job market was still weak despite recent signs of improvement, signaling that the Fed needs to continue to prop up the economy by keeping short-term interest rates near zero.
But economic data released on Tuesday that the world’s largest economy is still fragile.
Tech firms and steelmakers led the market decline, while automakers were bullish.
Market bellwether Samsung Electronics shed 0.69 percent to close at 1,302,000 won, retreating from a record high of 1,311,000 won the previous day.
LG Electronics, the country’s leading home appliance maker, dropped 4.3 percent to close at 82,300 won. LG Display also shed 4.9 percent to end at 27,150 won.
POSCO, the world’s third-largest steelmaker, declined 0.78 percent to close at 382,000 won, and its smaller rival Hyundai Steel also fell 0.6 percent to end at 99,900 won.
On the other hand, shipbuilders and automakers stayed in positive terrain.
Hyundai Heavy Industries, the country’s leading shipbuilder, rose 0.76 percent to close at 333,000 won, and its smaller rival Daewoo Shipbuilding & Marine Engineering gained 0.92 percent to end at 33,000 won.
Industry leader Hyundai Motor surged 2.88 percent to end at 232,500 won, and its smaller affiliate Kia Motors gained 2.75 percent to close at 74,800 won.
(Yonhap News)
