By Kim Yeon-hee
SEOUL, Nov 5 (Reuters) - Seoul shares fell on Thursday, with trade volume decreasing to the lowest in more than 14 months and Hyundai Motor battered by concerns about potential U.S. market share loss.
With uncertainty about any sustainable economic recovery prevailing, the strengthening won added pressure to exporters such as Samsung Electronics and Hynix Semiconductor.
Foreign investors unloaded a net 25 billion won ($21 million) worth of shares, shifting to selling after a four-session buying streak.
'Foreign investors had bought in when the dollar/won rate was at 1,500 won. Now that the rate has come down to the 1,170 won level, it does not look attractive to enter domestic markets from their perspective,' said Yoon Jeong-ho, a fund manager at Heungkuk Asset Management.
'With market talk growing that foreign investors may unwind dollar carry trade, it's unlikely the market will turn higher until economic data comes out strong and provides fresh momentum.'
The Korea Composite Stock Price Index shed 1.75 percent to 1,552.24 points, with about 201 million shares changing hands, the smallest amount since late August, 2008.
Hyundai Motor, the world's No. 4 carmaker along with its affiliate Kia Motors based on first half sales, dropped 4.2 percent to 102,000 won.
Analysts said the country's top automaker, focused on small and medium-sized car sales in the world's largest market, could lose market share to sports utility vehicle (SUV) and pick-up truck makers, which are leading a gradual rebound in U.S. auto sales.
Hynix, the world's No. 2 memory chipmaker, closed down 3.4 percent and its bigger rival Samsung Electronics fell 2.9 percent, with the won currency gaining about 35 percent against the U.S. dollar from its March lows to date. Keywords: MARKETS KOREA STOCKS/
Investors are waiting for signs of employment growth in advanced markets to assess whether economic recovery supported by stimulus policies will be sustainable after stimulus packages come to an end.
The U.S. Labour Department is set to release first-time claims for jobless benefits for the week ended Oct. 31 later in the day.
Among financial stocks, South Korea's No. 3 card issuer Samsung Card fell 4.9 percent to its session low, its weakest level in more than three months.
Woori Finance Holdings, South Korea's No. 3 banking group, bucked the trend, up 1.3 percent, after it delivered robust quarterly results last week.
Ssangyong Motor added 1.1 percent, ahead of a court decision over its proposed self-rescue plan on Friday.
Decliners outnumbered advancers 608 to 194, with 70 issues unchanged.
The KOSPI 200 December futures index ended down 2.30 points to 203.45, while the KOSPI 200 spot index declined 3.66 points to 203.52.
The junior Kosdaq market dropped 0.91 percent to finish at 479.46 points.
Move on day -1.75 percent
12
month high 1,723.17 23 SEPT 2009
12
month low 914.02 21 NOV 2008
Change on yr +38.0 percent
All time high 2,085.45 1 NOV 2007
All time low 93.10 6 JAN 1981
($1=1176.8 Won)
(Editing by Jonathan Hopfner)
((yeonhee.kim@thomsonreuters.com; +82 2 3704 5646; Reuters Messaging: yeonhee.kim.reuters.com@reuters.net)) Keywords: MARKETS KOREA STOCKS/ ASIA-PACIFIC STOCK MARKETS: Pan-Asia........ Japan....... S.Korea... S.E. Asia....... Hong Kong... Taiwan.... Australia/NZ.... India....... China..... OTHER MARKETS: Wall Street .... Gold....... Currency. Eurostocks...... Oil ....... JP bonds.. ADR Report ..... LME metals. US bonds.. Stocks News US.. Stocks News Europe DIARIES & DATA: Asia earnings diary U.S. earnings diary European diary South Korea diary Wall Street Week Ahead Eurostocks Week Ahead TOP NEWS: For top Asian company news, double click on: U.S. company news European company news Forex news Global Economy news Technology news Telecoms news Media news Banking news Politics/General news Asia Macro data A multimedia version of Reuters Top News is available at: http://topnews.session.rservices.com LIVE PRICES & DATA: World Stocks Currency rates Dow Jones/NASDAQ Nikkei FTSE 100 Debt South Korean won LME price overview (If you have a query or comment on this story, send an email to newsfeedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
SEOUL, Nov 5 (Reuters) - Seoul shares fell on Thursday, with trade volume decreasing to the lowest in more than 14 months and Hyundai Motor battered by concerns about potential U.S. market share loss.
With uncertainty about any sustainable economic recovery prevailing, the strengthening won added pressure to exporters such as Samsung Electronics and Hynix Semiconductor.
Foreign investors unloaded a net 25 billion won ($21 million) worth of shares, shifting to selling after a four-session buying streak.
'Foreign investors had bought in when the dollar/won rate was at 1,500 won. Now that the rate has come down to the 1,170 won level, it does not look attractive to enter domestic markets from their perspective,' said Yoon Jeong-ho, a fund manager at Heungkuk Asset Management.
'With market talk growing that foreign investors may unwind dollar carry trade, it's unlikely the market will turn higher until economic data comes out strong and provides fresh momentum.'
The Korea Composite Stock Price Index shed 1.75 percent to 1,552.24 points, with about 201 million shares changing hands, the smallest amount since late August, 2008.
Hyundai Motor, the world's No. 4 carmaker along with its affiliate Kia Motors based on first half sales, dropped 4.2 percent to 102,000 won.
Analysts said the country's top automaker, focused on small and medium-sized car sales in the world's largest market, could lose market share to sports utility vehicle (SUV) and pick-up truck makers, which are leading a gradual rebound in U.S. auto sales.
Hynix, the world's No. 2 memory chipmaker, closed down 3.4 percent and its bigger rival Samsung Electronics fell 2.9 percent, with the won currency gaining about 35 percent against the U.S. dollar from its March lows to date. Keywords: MARKETS KOREA STOCKS/
Investors are waiting for signs of employment growth in advanced markets to assess whether economic recovery supported by stimulus policies will be sustainable after stimulus packages come to an end.
The U.S. Labour Department is set to release first-time claims for jobless benefits for the week ended Oct. 31 later in the day.
Among financial stocks, South Korea's No. 3 card issuer Samsung Card fell 4.9 percent to its session low, its weakest level in more than three months.
Woori Finance Holdings, South Korea's No. 3 banking group, bucked the trend, up 1.3 percent, after it delivered robust quarterly results last week.
Ssangyong Motor added 1.1 percent, ahead of a court decision over its proposed self-rescue plan on Friday.
Decliners outnumbered advancers 608 to 194, with 70 issues unchanged.
The KOSPI 200 December futures index ended down 2.30 points to 203.45, while the KOSPI 200 spot index declined 3.66 points to 203.52.
The junior Kosdaq market dropped 0.91 percent to finish at 479.46 points.
Move on day -1.75 percent
12
month high 1,723.17 23 SEPT 2009
12
month low 914.02 21 NOV 2008
Change on yr +38.0 percent
All time high 2,085.45 1 NOV 2007
All time low 93.10 6 JAN 1981
($1=1176.8 Won)
(Editing by Jonathan Hopfner)
((yeonhee.kim@thomsonreuters.com; +82 2 3704 5646; Reuters Messaging: yeonhee.kim.reuters.com@reuters.net)) Keywords: MARKETS KOREA STOCKS/ ASIA-PACIFIC STOCK MARKETS: Pan-Asia........ Japan....... S.Korea... S.E. Asia....... Hong Kong... Taiwan.... Australia/NZ.... India....... China..... OTHER MARKETS: Wall Street .... Gold....... Currency. Eurostocks...... Oil ....... JP bonds.. ADR Report ..... LME metals. US bonds.. Stocks News US.. Stocks News Europe DIARIES & DATA: Asia earnings diary U.S. earnings diary European diary South Korea diary Wall Street Week Ahead Eurostocks Week Ahead TOP NEWS: For top Asian company news, double click on: U.S. company news European company news Forex news Global Economy news Technology news Telecoms news Media news Banking news Politics/General news Asia Macro data A multimedia version of Reuters Top News is available at: http://topnews.session.rservices.com LIVE PRICES & DATA: World Stocks Currency rates Dow Jones/NASDAQ Nikkei FTSE 100 Debt South Korean won LME price overview (If you have a query or comment on this story, send an email to newsfeedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2009 AFX News
