Korean stocks closed 0.41 percent lower Wednesday, as investors unloaded shares in large-cap tech issues amid worries over signs of a slowing economy in China, analysts said. The local currency fell against the U.S. dollar.
After bobbing in and out of negative territory, the benchmark KOSPI lost 7.67 points to 1,845.55. Trading volume was light at 235.1 million shares worth 2.20 trillion won ($1.89 billion) with decliners outpacing gainers 428 to 358.
“Tech blue-chips lost ground largely due to concerns over the fact that China is struggling to soft-land its economy after signs of its exports slowing,” said Bae Sung-young, an analyst at Hyundai Securities Co. He pointed out that the Chinese market is important because many businesses depend on the large market to generate growth.
The Chinese government said Tuesday that its trade surplus dropped 14.5 percent in 2011, signaling a slowdown in Asia’s largest economy.
Investors held steady with their equities with no specific direction being detected because there has been no actual reason to make changes amid the persistent eurozone woes, Bae added.
Tech giant Samsung Electronics Co. fell 0.49 percent to 1,021,000 won, with its smaller rival LG Electronics Inc. shedding 1.56 percent to 75,700 won and leading chipmaker Hynix Semiconductor Inc. dropping 0.41 percent to 24,250 won.
Oil refiners lost ground on concerns over rising global oil prices, with industry leader SK Innovation slipping 1.57 percent to 156,500 won and smaller player S-Oil slumping 2.23 percent to 109,500 won.
In contrast, auto shares edged up on foreign buying, with top player Hyundai Motor Co. gaining 0.22 percent to 227,000 won and its affiliated auto parts maker Hyundai Mobis Co. adding 0.31 percent to 319,500 won.
LG Display Co., the world’s second-largest maker of liquid crystal display, surged 2.68 percent to 26,800 won after it unveiled on Tuesday its new organic light emitting diode television in the U.S. market, raising its future prospects.
The local currency finished at 1,158.70 won against the greenback, down 2.2 won from Tuesday’s close amid concerns over the nagging eurozone debt crisis, dealers said.
(Yonhap News)
