SKorean shares close lower as US recession fears persist - UPDATE |
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Tue, 08 Jan 2008 08:34
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SEOUL (Thomson Financial) - South Korean shares closed lower Tuesday after an erratic session as worry about a US recession continued to undermine sentiment.The market turned higher midway through the session on bargain-hunting but investor interest could not be sustained amid caution ahead of the corporate earnings season at home and in the US.The KOSPI index finished down 4.91 points or 0.3 percent at 1,826.23, after trading between 1,818.69 and 1,840.62. The index fell 1.8 percent on Monday.'Wall Street managed to put the brakes on its recent steep correction but that fell short of soothing investors' persistent worries [about the US economy],' said Kang Moon-Sung, an analyst at Korea Investment & Securities.Caution lingered ahead of the settlement of options and futures contracts on the local bourse this Thursday.'If expectations of an interest rate cut in the US become more visible in coming weeks, that should provide a boost to the market,' Kang said.Kang advised investors to build positions if the KOSPI falls below 1,800 points.Volume traded reached 290 million shares worth 5.3 trillion won.Decliners beat gainers 444 to 349, with 82 issues unchanged.Foreign investors were net sellers of shares worth 377.8 billion won, while institutions were net buyers of shares worth 136.6 billion. Retail investors were net buyers of 53.0 billion won worth of shares.POSCO dropped 6,000 won or 1.1 percent to 540,000 won as investors were expecting little positive surprise from its latest quarterly earnings announcement this Thursday.Banks retreated as investors stayed away from the sector ahead of quarterly results from major US investment banks, with Kookmin Bank down 1,000 won or 1.6 percent at 63,700 won.Daewoo Securities tumbled 3,900 won or 12.4 percent to 27,600 won on disappointment that the sale process for the brokerage may take some time.The transition team of the incoming government has suggested combining the investment banking operations of the state-run Korea Development Bank (KDB) and Daewoo Securities within the year, and gradually selling the combined entity over the next five to seven years. KDB currently holds a 39.09 percent stake in Daewoo Securities.Mobile operators were weaker on fears that they will eventually cut tariffs at the request of the new administration and civic groups to help reduce the cost of living.SK Telecom slid 3,500 won or 1.6 percent to 220,500 won and KT Freetel skidded 650 won or 2.3 percent to 27,700 won.Hyundai Motor gained 600 won or 0.9 percent at 69,100 won on hopes that its first luxury sedan model to be launched tonight will give the world's sixth largest carmaker an edge to compete with global brands.( 1 US dollar = 939.30 won )saeromi.shin@thomson.comss/nt-sss/jg/sss/ntCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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Thai shares open sharply lower after sell-off on Wall Street 