South Korean stocks dropped 1.5 percent Wednesday as market hopes for an additional credit easing in the U.S. waned, analysts said. The local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index sank 30.67 points to close at 2,018.61. Trading volume was moderate at 607 million shares worth 5.77 trillion won ($5.11 billion), with losers outpacing gainers 693 to 153.
U.S. stocks closed in negative terrain on Monday after minutes released from the Federal Reserve’s last meeting signaled further measures to stimulate the economy are unlikely.
“Market investors remained weak on speculation that the Fed may not take a step toward a further credit easing,” said Kwak Hyun-soo, an analyst at IBK Investment & Securities.
Tech firms, steelmakers and shipbuilders finished in negative terrain, while some defensive stocks closed higher.
Market bellwether Samsung Electronics lost 1.12 percent to close at 1,320,000 won. SK hynix, the world’s No. 2 memory chipmaker, shed 2.97 percent to end at 29,400 won.
Hyundai Heavy Industries, the world’s largest shipbuilder, dropped 2.29 to close at 320,500 won and its smaller rival Samsung Heavy Industries fell 4.34 percent to end at 37,450 won.
POSCO, the country’s leading steelmaker, also fell 1.45 percent to close at 375,000 won, and Hyundai Steel shed 2.84 percent to end at 102,500 won.
Earlier in the day, the company sold shares in three South Korean firms for a combined 583 billion won as part of efforts to improve their financial status.
South Korea’s leading automobile exporters remained almost flat, backed by strong March sales in the recovering U.S. auto market.
Industry leader Hyundai Motor slipped 0.59 percent to at 253,500 won, and its smaller affiliate Kia Motors remained steady at 78,300 won.
Some defensive shares rose with KT&G, the country’s leading cigarette maker, gaining 2.23 percent to end at 77,800 won.
The local currency finished at 1,129.20 won to the greenback, down 7.4 won from Tuesday’s close as investors shunned risky assets.
(Yonhap news)
