Shares drop 0.48% on Europe woes

South Korean stocks finished 0.48 percent lower on Monday as investor sentiment was hurt by lingering uncertainty about the European debt situation, analysts said. The local currency fell against the U.S. dollar.

After opening 4.54 points higher, the benchmark KOSPI lost 9.31 points to 1,919.1. Trading volume was moderate at 342.9 million shares worth 1.09 trillion won ($957.8 million) with losers slightly leading gainers 415 to 400.

“Europe’s sovereign debt issue still exerts great influence on the Korean market,” said Um Tae-woong, a market analyst for Bookook Securities Co. “A meeting of European finance ministers for today is not expected to produce a concrete solution. Also, U.S. data did not show a clear sign of recovery.”

But a decision among Greek political parties to form a coalition somewhat removed uncertainties, blocking the index from going further south, he added.

Foreign investors scooped up shares worth 137.8 billion won, while institutions offloaded a net 5.2 billion won of stocks.

Large-cap exporters lost ground across the board. The world’s largest memory chipmaker Samsung Electronics lost 1.19 percent to 993,000 won and Hynix Semiconductor fell 3.02 percent to finish at 24,100 won.

Carmakers were also bearish, with industry leader Hyundai Motor slipping 0.42 percent to 237,000 won and its smaller affiliate Kia Motors dropping 1.42 percent to close at 76,300 won.

Banks and financial firms finished mixed. Hana Financial Group lost 1.73 percent to 39,700 won, but KB Financial Group rose 0.72 percent to 42,000 won and Woori Finance Holdings jumped 1.44 percent to 10,550 won.

The local currency closed at 1,116.9 won to the greenback, down 6.2 won from Friday’s close, as investor appetite for risky assets didn’t return amid economic uncertainties, dealers said. 

(Yonhap News)