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  • Shares drop 0.4% on global recession woes
    Shares drop 0.4% on global recession woes
    South Korean stocks closed 0.4 percent lower Monday as investors’ sentiment was dampened by concerns over a global recession and persistent eurozone debt woes, analysts said. The local currency declined against the U.S. dollar.The benchmark Korea Composite Stock Price Index lost 7.67 points to 1,925.59. Trading volume was moderate at 554.9 million shares worth 4.49 trillion won ($4.04 billion), with losers outnumber...
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Shares drop 0.4% on global recession woes

Oct. 15, 2012 - 21:02 By Kim Yon-se
South Korean stocks closed 0.4 percent lower Monday as investors’ sentiment was dampened by concerns over a global recession and persistent eurozone debt woes, analysts said. The local currency declined against the U.S. dollar.

The benchmark Korea Composite Stock Price Index lost 7.67 points to 1,925.59. Trading volume was moderate at 554.9 million shares worth 4.49 trillion won ($4.04 billion), with losers outnumbering gainers 548 to 297.

“There’s no big positive momentum to lead the index upward. Investors are worried about a possible recession amid grim corporate earnings outlooks,” said Lim Dong-rak, an analyst at Hanyang Securities Co.

Investors are focusing on China’s announcement of its third-quarter gross domestic product slated for Thursday, which is widely estimated to have grown 7.4 percent on-year, compared with a 7.6 percent gain in the previous quarter, noted Lim.

“Europe is still struggling to solve the debt crisis but seems to have a long way to go,” he added. “Expectations are low for a summit meeting of the European Union leaders later this week.”

Foreign investors dumped a net 185.4 billion won worth of local shares for a three-day selling streak.

Market heavyweights led the decline with shipbuilders and autos ending in negative territory.

The world’s biggest shipyard Hyundai Heavy Industries retreated 0.84 percent to 236,000 won and Daewoo Shipbuilding & Marine Engineering dropped 2.05 percent to 23,900 won.

Carmakers were among the biggest losers due to gloomy third-quarter earnings forecasts, with industry leader Hyundai Motor sliding 1.31 percent to 225,500 won and its smaller affiliate Kia Motors slumping 3.08 percent to 66,100 won.

Techs closed mixed. Samsung Electronics, the world’s largest handset maker, gained 0.31 percent to 1,300,000 won, while the country’s second-largest home appliance maker LG Electronics dipped 0.44 percent to 67,900 won.

The local currency ended at 1,110.5 won against the greenback, up 0.7 won from Friday’s close, due to the weak euro ahead of a European Union summit, dealers said. (Yonhap News)
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