South Korean stocks finished 0.92 percent lower Wednesday as investors cut high-dividend shares on the expiry of their dividends, analysts said. The local currency climbed against the U.S. dollar.
The benchmark KOSPI dropped 16.9 points to 1,825.12, extending a losing streak to a third session. Trading volume was moderate at 374 million shares worth 3.26 trillion won ($2.81 billion) with losers leading gainers 499 to 317.
“Institutional investors were net sellers and high-dividend shares, such as telecom companies and oil refiners, were the biggest losers,” said Han Bum-ho, a market analyst at Shinhan Investment Corp.
Investors were also hesitant to make big bets on risks as a brief plunge on the previous day showed that the local stock market still remained vulnerable to rumors about North Korea.
“Investors laid flat ahead of year-end holidays as they wanted to keep their eyes on how situations roll out next year, including U.S. markets, Europe and the power succession in North Korea,” Han added.
Investors cut shares following the last dividend payments before the end of the year. As stocks usually drop in price by the amount of the expected dividend, high-dividend shares lost the most ground.
SK Telecom, leading mobile operator, tumbled 6.29 percent to 141,500 won and KT, the second-biggest mobile carrier, dropped 4.78 percent to 35,850 won.
Other companies in the oil and banking sectors that give out large dividend payments to shareholders went south. S-Oil sank 4.72 percent to 101,000 won and Korea Exchange Bank, the No. 5 lender, was down 5.1 percent to 7,450 won.
(Yonhap News)
