South Korean stocks edged 0.83 percent down on Tuesday, as investors remained cautious over debt-ridden Italy’s situation, which could spill over into the entire region, analysts said. The local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index fell 15.96 points to 1,903.14. Trading volume was moderate at 398.6 million shares worth 5.16 trillion won ($4.6 billion), with losers outnumbering gainers 508 to 313.
“There’s no big issue to prompt investors to bet on an upward move. Investors are taking a wait-and-see stance as the Italian political turmoil continued. And they are waiting for the results of the meeting of European financial ministers tonight,” said Lee Jae-hoon, an analyst at Mirae Asset Securities Co.
They are concerned that the Italian government bond yields, which have risen to their highest since 1997, could throw the entire eurozone deeper into a financial crisis. But the European Union meeting on Tuesday won’t produce substantial solutions to ease the situation, Lee said.
“The market does not expect much from the EU leaders and investors don’t have a strong appetite either for selling or buying as they watch developments in Europe,” he added.
Foreigners bought a net 24.7 billion won worth of shares, while institutions offloaded a net 59.7 billion won.
Market heavyweights closed mixed.
Tech firms were among the losers, with world’s biggest chipmaker Samsung Electronics falling 2.32 percent to 970,000 won, staging a two-session bearish run after rallying to touch the 1-million won landmark last week. Its smaller rival Hynix Semiconductor dropped 4.56 percent to 23,000 won.
Woori Finance Holdings sank 2.37 percent to finish at 10,300 won and Hana Financial Group fell 2.52 percent to 38,700 won.
SK Holdings, the holding company of SK Group, shed 0.68 percent to close at 145,000 won on a prosecution raid earlier on the day on charges of misappropriation of company funds by the group family.
Refiners, however, went bullish on reports that international oil prices would rise due to escalating tension between Israel and Iran. Top refiner SK Innovation rose 2.03 percent to 176,000 won.
Steelmakers largely gained ground with POSCO, the world’s third-biggest steelmaker, rising 0.53 percent to 380,500 won and Hyundai Steel advancing 1.81 percent to close at 101,500 won.
The local currency closed at 1,121 won against the greenback, down 4.1 won from Monday’s close, as investor appetite for safe-haven assets grew amid the lingering Europe woes, dealers said.
