South Korean stocks slumped 0.37 percent on Thursday as investor sentiment remained fragile due mainly to weak hopes for an upcoming European summit, analysts said. The local currency fell against the U.S. dollar.
The benchmark KOSPI declined 7.03 points to 1,912.39. Trading volume was heavy at 420.1 million shares worth 5.86 trillion won ($5.18 billion), with gainers outpacing decliners 425 to 397.
“Investors are doubtful whether the European summit on Friday will bring about substantial developments in the region’s debt crisis,” said Kim Young-jun, an analyst at SK Securities Co.
Kim added that “quadruple witching,” the simultaneous expiration of contracts for stock index futures, stock index options, stocks options and stock futures, also weighed down on the benchmark index.
Institutions and retail investors opted to scale back their holdings, but foreigners snapped up shares. Pension funds continued to support the KOSPI.
Autos led the decline, with top carmaker Hyundai Motor losing 1.76 percent to 223,000 won and its auto-parts affiliate Hyundai Mobis retreating 2.18 percent to 314,000 won.
LG Display dropped 5.09 percent to 24,250 won on rumors the world’s third-largest maker of liquid crystal display (LCD) panels is planning a capital increase. The company dismissed such talk.
KT slumped 2.64 percent to 36,850 won after a Seoul court ordered the No. 2 mobile carrier to continue its second-generation mobile service, dealing a blow to the firm’s bid to begin offering fourth-generation service.
In contrast, leading mobile carrier SK Telecom gained 2.67 percent to 154,000 won and No. 3 player LG Uplus advanced 2.31
percent to 7,080 won.
No. 4 builder Daewoo Engineering & Construction rose 2.5 percent to 10,250 won after winning two orders worth $248 million to build an office building and an oil storage facility.
The local currency closed at 1,131.4 won against the greenback, down 5.3 won from Wednesday’s close amid the KOSPI’s decline and lingering jitters over the eurozone debt crisis, dealers said.
(Yonhap News)
