Seoul shares slipped on Thursday after reports that North Korea is completing a second missile launch site, with financial, shipyard and construction plays retreating. The Korea Composite Stock Price Index finished down 0.6 percent at 1,977.22 points. The KOSPI 200 March futures index fell 1.3 points to 261.65 points.
The KOSPI 200 spot index eased 1.33 points to 261.23 points. The junior Kosdaq index slipped 1.73 percent to 511.08 points. "News that North Korea has nearly completed building a second missile launch site weakened already fragile investor sentiment," said HI Investment & Securities market analyst Kim Seung-han.
North Korea appeared close to finishing a second launch site for long-range missiles, media reported on Thursday, amid US concern that Pyongyang's ballistic missile programme is fast becoming a direct threat. "Shipbuilders and construction issues were more heavily targeted in the selloff as their fundamentals are not as attractive as blue chip sectors. It is easier to cut them off when adjusting your portfolio," said Shinhan Investment Corp market analyst Lee Sun-yeb.
Foreign investors were buyers of a net 66.5 billion won ($59.62 million) worth of stocks, snapping a two-session selling streak. Hyundai Heavy Industries Co Ltd, the world's No 1 shipbuilder, fell 2.3 percent, weighed further by a near 3 percent fall in the Baltic Dry Index, which measures the cost of shipping key commodities. Hyundai Heavy shares reached a 39-month high of 513,000 won last month.
Daewoo Shipbuilding & Marine Engineering Co Ltd declined 3.4 percent. Daewoo Engineering & Construction Co Ltd tumbled 4.1 percent after local media reported that the company was under investigation by prosecutors. Daewoo E&C officials could not be reached for comment.
Comments
Comments are closed for this article.