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Shares dip on autos, shipbuilders

Nov. 1, 2012 - 20:02 By Korea Herald
South Korean stocks sank 0.71 percent Thursday as investors dumped auto shares on a dim industry outlook in addition to the recent appreciation of the local currency. The Korean won lost against the U.S. dollar.

The benchmark Korea Composite Stock Price Index retreated 13.62 points to finish at 1,898.44. Trading volume was moderate at 395.6 million shares worth 5.17 trillion won ($4.74 billion) with decliners outpacing gainers 505 to 305.

“There are growing negative market prospects about auto shares.

Given that the won will likely continue its gain for some time, investor’s consensus is getting gloomier about the industry, said Kwak Jung-boo, an analyst at Samsung Securities Co.

Institutional investors sold off a net 355.8 billion won worth of stocks on the local bourse. The Korean won has strengthened nearly 5 percent against the U.S. dollar so far this year, largely due to a liquidity influx from major economies into the global capital market.

Foreigners and retail investors snapped up shares worth a net 182.2 billion won and a 161.3 billion won each.

”The inflow of foreign funds seen later in the trading lent support to stemming the KOSPI from falling any further,“ Kwak added.

Most shares drifted into negative terrain, with auto-related issues leading the decline. No. 1 automaker Hyundai Motor dipped 3.79 percent to 216,000 won and its auto parts-making affiliate Hyundai Mobis sank 3.24 percent to 269,000 won.

Shipbuilders and construction firms also lost ground. Hyundai Heavy Industries, the world’s largest shipyard, slid 4.15 percent to 219,500 won and Daewoo Engineering & Construction dropped 3.56 percent to 8,950 won. (Yonhap News)