South Korean stocks ended over 1.7 percent lower Tuesday, as investor sentiment was pummeled by worries about higher oil prices. The South Korean won depreciated sharply against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) lost 21.71 points, or 1.73 percent, to 1,233.42, extending its losing streak to a fourth session. Volume was light at 184 million shares worth 2.36 trillion won (US$2.46 billion), with losers outpacing gainers 613 to 125. The blue-chip KRX 100 index declined 44.06 points, or 1.69 percent, to 2,561.83, and the tech-laced KOSDAQ index dropped 15.69 points, or 2.80 percent, to 543.97.
The local currency finished at 958.70 won, down 4.90 won from Friday's close, as the Japanese yen fell against the greenback.
The local currency market was closed Monday for the country's Constitution Day.
"Investors remained jittery that recent rises in oil prices may cause an economic slump. Foreign investors dumped shares, pulling down the market," said Kim Jung-hyun, an analyst at Goodmorning Shinhan Securities Co.
U.S. crude oil for August delivery fell $1.73 to $75.30 a barrel, down from a record high of $78.40 on Friday, on worries over the latest outbreak of fighting in the Middle East.
Foreign selling sent tech and financial shares lower. Tech giant Samsung Electronics slid 0.34 percent to 582,000 won and the world's second-largest computer memory chipmaker Hynix Semiconductor lost 0.97 percent to 30,600 won. However, the world's largest liquid crystal display LG.Philips LCD gained 2.75 percent to 31,800 won on an assessment that its shares prices hit the bottom.
Top lender Kookmin Bank dipped 2.26 percent to 73,600 won and the nation's No. 2 financial service company Shinhan Financial Group fell 1.68 percent to 44,000 won. The nation's third largest oil refiner S-Oil rose 5.93 percent to 67,900 won on news that South Korean conglomerate Lotte Group would acquire the company. Cement shares got a boost from hopes that they will benefit from expected work to repair damage from flooding over the past few days. Ssangyong Cement Industrial jumped 5.86 percent to 11,750 won and Korea Cement gained 2.25 percent to 11,350 won.
Heavy rains have hit the country since late last week, resulting in heavy casualties and property damage. More than 50 people were reported killed or missing.
In contrast, non-life insurers dipped on jitters that they may increase their payments on the flood damages. Samsung Fire & Marine Insurance fell 1.63 percent to 121,000 won and its smaller rival LIG Insurance slipped 7.81 percent to 11,800 won.
On the currency market, the won opened lower against the greenback, but its fall was curbed as local exporters sold dollars, dealers said. In afternoon trading, the won extended its weakness versus the dollar on the yen's descent against the greenback, they added.
Bond prices, which move inversely to yields, gained sharply.
The return on the benchmark three-year Treasuries fell 0.03 percentage point to 4.88 percent, with the yield on the five-year government bonds losing 0.03 percentage point to 4.98 percent.
Seoul, July 18 (Yonhap News)
Seoul shares close lower on worries over higher oil prices |
