The Korea Herald

피터빈트

Seoul shares down 0.2 pct on crude oil woes

By KH디지털2

Published : Jan. 13, 2015 - 16:34

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South Korean stocks ended 0.2 percent lower Tuesday as persistent worries over weakening global oil prices sapped investor sentiment, analysts said. The local currency lost ground against the U.S. dollar.


The benchmark Korea Composite Stock Price Index moved down 3.81 points to 1,917.14. Trading volume was moderate at 309.7 million shares worth 4.66 trillion won ($4.3 billion) with decliners outnumbering gainers 469 to 329.


"Concern over industries, including chemical, refined oil and steel, is growing as global oil prices keep crashing," said Kim Yong-gu, an analyst at Samsung Securities Co.


Oil prices have been on a downtrend in recent months, with both Brent and U.S. crude falling to their lowest levels in more than five years.


Analysts said the failed shares block sale of the logistics unit of Hyundai Motor Group by Chairman Chung Mong-koo and his son may also have fueled the day's decline.


"The failure in selling the stakes in Hyundai Glovis owned by Chairman Chung and his son Eui-sun also seems to have pushed down share prices in firms that are involved in the corporate ownership structure of local conglomerates," Kim said. 


Foreigners sold a net 53.69 billion won, and institutions offloaded a net 308.04 billion won. Retail investors bought more shares than they sold at 272.12 billion won.


Oil refiners were in negative territory, with SK Innovation dropping 2.37 percent to 82,500 won and S-Oil slipping 0.51 percent to end at 48,600 won.


LG Chem, the country's leading chemicals maker, surrendered 0.28 percent to 180,000 won, and top steelmaker POSCO also backtracked 2.75 percent to close at 282,500 won.


Tech shares moved in different directions, with the world's largest handset maker Samsung Electronics going up 1.75 percent to 1,339,000 won while LG Electronics decreased 0.97 percent to 61,500 won. Chipmaker SK hynix lost 2.58 percent to 49,000 won.


Autos gained ground, as Hyundai Motor rose 1.13 percent to 179,500 won. Its sister affiliate Kia Motors advanced 2.26 percent to 54,200 won, and car parts maker Hyundai Mobis jumped up 11.55 percent to 265,500 won. 


STX continued its winning streak as it shot up 14.92 percent, nearing the daily bourse limit, after a comeback on the Seoul main bourse Monday, following its 9 to 1 share write-down in December.


Hyundai Glovis, in contrast, extended its loss by the daily limit of 15 percent to finish at 255,000 won. Cheil Industries, the de facto holding firm of the country's top conglomerate Samsung Group, also ended bearish, plummeting 6.44 percent to 138,000 won. 


The local currency ended at 1,083.50 won against the U.S. dollar, down 2.10 won from Monday's close.


Bond prices, which move inversely to yields, ended lower. The yield on three-year Treasurys stepped up 1.8 basis points to 2.024 percent, and the return on the benchmark five-year government bonds increased 0.4 basis point to 2.156 percent. (Yonhap)