[THE INVESTOR] South Korean stocks dipped 0.5 percent on Oct. 25, as investors decided to sell off shares. The Korean won fell against the US greenback.
The benchmark KOSPI fell 10.57 points to close at 2,037.17. Trade volume was moderate at 294 million shares worth 4.82 trillion won (US$4.25 billion), with losers outnumbering gainers 583 to 232.
Top market cap Samsung Electronics shed 0.68 percent to end at 1,597,000 won, and No. 2 market cap Korea Electric Power Corp. fell 0.68 percent to end at 50,100 won.
Cosmetics makers were hit hard by news that Chinese authorities are ordering travel agencies to limit travel packages to South Korea, which is feared to have negative impacts on Korean beauty product makers, such as AmorePacific.
The country’s top cosmetics maker plunged 7.12 percent to end at 345,500 won, and LG Household & Health Care, the No. 2 player, sank 8.34 percent to finish at 846,000 won.
In contrast, SK hynix, a major chipmaker, rose 2.24 percent to end at 41,050 won after it reported market forecast-beating third-quarter earnings, aided by higher chip prices.
Auto shares remained in positive terrain with industry leader Hyundai Motor rising 2.6 percent to 138,000 won and its smaller affiliate Kia Motors climbing 0.73 percent to 41,650 won.
Hyundai Motor Group said earlier in the day that executives of its 51 affiliates will have their pay cut by 10 percent to tide over worsening business conditions at home and abroad.
Lotte Group affiliates advanced after it vowed to reform the group’s corporate structure to regain public trust.
Lotte Chemical rose 1.64 percent to end at 310,500 won, and Lotte Shopping also gained 0.43 percent to finish at 233,500 won.
Hanjin Shipping, the country’s top shipper, sank 5.97 percent to end at 945 won on news that it is working to wind down its European operations amid slackened demand and rising losses.
The local currency closed at 1,133.5 won against the US dollar, down 2.5 won from the previous session’s close.
Bond prices, which move inversely to yields, declined. The yield on three-year Treasurys rose 1.3 basis points to 1.393 percent and the return on the benchmark five-year government bond gained 2.3 basis points to 1.460 percent.
(
theinvestor@heraldcorp.com)
