The Korea Herald

지나쌤

Seoul shares down 0.19 pct on renewed eurozone woes

By KH디지털2

Published : Jan. 12, 2015 - 16:08

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South Korean stocks ended 0.19 percent lower Monday as investors' expectations for an economic recovery in the eurozone lost momentum, analysts said. The South Korean won gained against the U.S. dollar.


The benchmark Korea Composite Stock Price Index fell 3.75 points to 1,920.95. Trading volume was moderate at 301.44 million shares worth 3.48 trillion won ($3.22 billion), with gainers beating decliners 434 to 371.


Analysts said investors' prospects for a turnaround in the European economy died down after having pushed up prices until last week.


"The index is now taking a break from its upward spiral seen in the past three trading sessions, which had been initially buoyed by anticipations for an economic recovery in the eurozone," said Kang Hyun-gie, an analyst from I'M Investment & Securities Co. 


Analysts had predicted the eurozone economy would pick up its pace on the back of a possible bond-buying scheme by the European Central Bank, which helped to pull up market expectations until the previous trading session.


However, a report released by the ECB on Friday showed that the size of the potential quantitative easing by the central bank may be up to 500 billion euros ($593.15 billion), which was below market expectations and renewed concerns about the eurozone.


Foreigners sold a net 85.3 billion won, and retail investors offloaded a net 4.64 billion won. Institutions also sold more shares than they bought at 5.28 billion won.


Autos ended mixed, with industry leader Hyundai Motor falling 1.39 percent to 177,500 won and its sister affiliate Kia Motors moving down 0.75 percent to 53,000 won, while car parts maker Hyundai Mobis remained unchanged at 238,000 won.


Tech shares also moved in different directions. Tech giant Samsung Electronics went up 0.15 percent to 1,316,000 won, and chipmaker SK hynix gained 1.21 percent to 50,300 won. Flat screen provider LG Display saw prices drop after news that two of its workers at a local factory were killed by a nitrogen leak, ending 0.14 percent lower at 35,100 won.


Mobile carriers, in contrast, ended bullish, with SK Telecom, the country's top mobile carrier, advancing 0.38 percent to 267,000 won and No. 3 LG Uplus jumping 3.78 percent to 12,350 won. KT added 0.17 percent to close at 29,950 won.


Samsung Group's de facto holding firm Cheil Industries shed 1.67 percent to 147,500 won. Another Samsung affiliate Samsung SDS, an IT services provider, also dropped 3.83 percent to end at 289,000 won on profit-taking, ending its two-day winning streak.


STX, which came back on the South Korean bourse after its 9 to 1 share write-down in December from a credit crunch, soared by the daily bourse limit of 15 percent on its first trading day.


The local currency ended at 1,081.40 won against the U.S. dollar, up 8.60 won from Friday's close.


Bond prices, which move inversely to yields, ended higher. The yield on three-year Treasurys fell 5.0 basis points to 2.006 percent, and the return on the benchmark five-year government bonds lost 6.9 basis points to 2.152 percent. (Yonhap)