From
Send to

Seoul shares down 0.36 percent on eurozone woes

July 10, 2012 - 16:46 By KH디지털뉴스부공용
South Korean stocks closed 0.36 percent lower on Tuesday as investors' sentiment was undermined by fruitless European meetings and pessimistic Chinese economic data, analysts said. The local currency fell against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) lost 6.68 points to 1,829.45. Trading volume was light at 363.9 million shares worth 3.3 trillion won ($2.89 billion), with decliners far outnumbering gainers 517 to 289.

"The persistent Europe risk is still powerful in the stock market. Rising borrowing costs in Spain stoked concern about Europe's debt crisis," said Lee Da-seul, a market analyst from Korea Investment & Securities Co.

"The recent European summit meeting failed to produce a substantial result and the market was disappointed with it."

Investors see that it will take time for Europe to implement bank rescue plans and finalize Spain's bailout even after a Monday meeting of eurozone finance ministers, he added.

Lee also noted that China's economic data set to be released later this week will fail to meet market expectations.

Shares lost ground across the board, with banks, steelmakers and shipbuilders leading the decline.

Woori Finance Holdings, South Korea's largest banking group by assets, lost 1.27 percent to 11,700 won with No. 2 player Hana Financial Group falling 1.53 percent to close at 35,300 won.

Top steelmaker POSCO slid 0.4 percent to 372,500 won and Korea Zinc, the world's second-largest zinc smelter, dropped 1.87 percent to 368,000 won.

The world's largest shipyard Hyundai Heavy Industries skidded 0.38 percent to 261,000 won.

Carmakers finished mixed. Market leader Hyundai Motor retreated 0.22 percent to finish at 228,000 won, while its smaller affiliate Kia Motors climbed 0.83 percent to 73,100 won.

However, techs closed higher on better-than-expected second-quarter earnings outlooks, with world's largest chipmaker Samsung Electronics adding 0.09 percent to 1,127,000 won.

The local currency ended at 1,143.7 won to the greenback, down 2.6 won from Monday's close, as investors lost their appetite for risky assets amid lingering Europe concerns, dealers said. (Yonhap News)