Seoul shares dropped on Friday, weighed by steep falls in refining issues such as SK Innovation, as investors fretted over a plunge in commodities prices and cut positions ahead of US payrolls data. The Korea Composite Stock Price Index (KOSPI) finished down 1.52 percent at 2,147.45 points.
"The market is continuing to take a breather following the latest rises that lifted shares to a series of historical highs, and this technical correction will slow at the current level near 2,180 points," said Lawrence Kim, a market analyst at Woori Investment & Securities. Foreign investors sold a net 241 billion won ($222.8 million) worth of shares, ending an 11-session buying streak.
Slumping oil prices battered crude oil refiners, with SK Innovation, the country's No 1, ending down 6.9 percent and S-Oil down 5.1 percent. Shipbuilders declined, with shares in Daewoo Shipbuilding & Marine Engineering falling 5.6 percent. The world's No 2 shipbuilder Samsung Heavy Industries retreated for the fourth consecutive session, shedding 5.4 percent.
"News of commodity prices falling sparked profit-taking in refiners and shipbuilders after they drove the market's rally." Kim added. But state utility firm Korea Electric Power Corp jumped as much as 9.7 percent to its highest since early January on hopes of better profits following reports it may be permitted to raise electricity tariffs from the second half of the year.
The government is considering allowing KEPCO to adjust tariffs according to fluctuations in fuel costs, Yonhap news reported the energy minister as saying. Woori Finance Holdings gained 1.4 percent, outperforming other banking stocks, on expectations that its stalled privatisation process would get a boost after state-run KDB Financial Group said it might bid for the government's stake in Woori. KOSPI 200 June futures fell 5.65 points to 284.10 and the KOSPI 200 spot index lost 4.78 points to 283.68. The junior Kosdaq market ended down 0.81 percent at 506.42.
Comments
Comments are closed for this article.