South Korean shares end lower after government’s corporate reform plan
- KOSPI closed down 20.62 points, or 0.77%, at 2,647.08
SEOUL: Round-up of South Korean financial markets:
South Korean shares fell on Monday as the government’s announcement of corporate reform measures did not meet market expectations.
The benchmark KOSPI closed down 20.62 points, or 0.77%, at 2,647.08, after falling as much as 1.42% earlier.
South Korea announced on Monday a reform plan for listed companies to boost shareholder returns in an effort to reduce the “Korea discount” on stock prices.
“Now with the policy unveiled, stock prices need to be seen from a mid- to long-term perspective with a focus on each company’s response,” said Seo Jung-hun, an analyst at Samsung Securities.
The decline was led by shares of banks and automakers, which had led a recent rally before the government’s policy announcement, among other stocks often considered undervalued.
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The Korea Stock Exchange Finance-Major Index dropped 3.33%, while the Transport Equipment Index lost 1.35%, with Hyundai Motor down 2.05% and sister automaker Kia Corp down 3.21%.
Of the total 934 traded issues, 233 shares advanced, while 660 declined.
Foreigners were net buyers of shares worth 114.1 billion won ($85.74 million) on the main board.
The won ended onshore trade at 1,331.1 per dollar, 0.01% lower than its previous close at 1,331.0.
In money and debt markets, March futures on three-year treasury bonds rose 0.15 point to 104.67.
The most liquid three-year Korean treasury bond yield fell by 3.3 basis points to 3.341%, while the benchmark 10-year yield fell by 6.1 basis points to 3.406%.
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