SEOUL: Seoul shares fell on Tuesday as concerns about Europe returned to the forefront after major credit ratings agencies warned European leaders had not done enough to tackle the region's debt crisis.
"Shares are tracking falls in the US and Europe as positive momentum from the European summit has proved short-lived. Investors doubt the measures [from the recent European summit] will be any help in the near-term," said Jung Seung-jae, an analyst at Mirae Asset Securities.
Ratings agency Standard & Poors put more pressure on the euro zone on Monday, with its chief economist saying that time was running out and that the region might need another financial shock to find the momentum to address its debt problem.
The Korea Composite Stock Price Index was down 1.39 percent at 1,873.31 points as of 0111 GMT.
Samsung Card plummeted 6.2 percent after the credit card issuer said it had decided to sell a 17 percent stake worth 773.85 billion won ($675 million) in unlisted amusement park operator Samsung Everland to construction materials firm KCC Corp.
The price of the stake sale was "disappointing," K.H. Koo, an analyst at Hyundai Securities, said in a report on Tuesday.
"[The weak pricing] will be negative for investor sentiment for some time."
Samsung Card is selling the stake at 1.82 million won per share, lower than the 2.14 million won it estimated in a regulatory filing in September.
KCC meanwhile rose 3.2 percent.
Technology issues eased after Intel's warning that supply shortages would dent its fourth quarter revenues.
Samsung Electronics, the world's No.1 memory chip maker, fell 1 percent and Hynix Semiconductor declined 2 percent.
Crude oil refiners lost ground after oil prices fell in US trade overnight, pointing to softer oil product prices.
S-Oil lost 3.1 percent and SK Innovation shed 3.3 percent.
Airlines and tour issues retreated as the won plunged to its lowest in two weeks, possibly damaging appetite for overseas travel and boosting the cost of importing jet fuel.
Asiana Airlines lost 2.1 percent and Modetour shed 1.8 percent.
But defensive issues gained ground as appetite for assets perceived as safer strengthened.
Snack manufacturer Orion Corp advanced 0.8 percent and beverage maker Lotte Chilsung inched up 0.1 percent.
Comments
Comments are closed for this article.