SEOUL, June 12: Seoul shares edged lower on Wednesday as global equity market sentiment deteriorated after Japan’s central bank did not announce any new measures to calm market volatility.
The Korea Composite Stock Price Index was down 0.09 percent at 1,919.00 points as of 0126 GMT, testing the 1,900 points mark, which the market had managed to stay above for the past two months.
‘The market is disappointed that Bank of Japan did not introduce new policy measures,’ said Lee Kyung-su, a market analyst at Shinhan Investment Corp, but added however that at the current level Seoul shares were ‘definitely undervalued’ and further falls were not likely.
The South Korean share market’s 12-month forward price earnings multiple was 9.2 and current price to book-value ratio 1.1, Thomson Reuters StarMine data showed. This compared with its peers Taiwan’s 14.3 and 1.7, and Japan’s 13.9 and 2 respectively.
News that global index provider MSCI kept South Korea on review for reclassification to developed market status from its current emerging market position, along with Taiwan, also lowered the mood. MSCI said there were still shortcomings in both markets’ accessibility.
Foreign investors sold a net 114.4 billion won worth of stocks, and were poised to continue offloading shares for a fourth straight session.
Shares that are more sensitive to news about North Korea tumbled after the scrapping of planned high-level talks between South and North Korea after a near six-year hiatus.
Shares in Hyundai Merchant Marine, a majority shareholder of unlisted Hyundai Asan which operates (currently suspended) tours of Mount Kumgang in North Korea, fell 12.2 percent. Shares in Romanson, a watch and jewellery maker that has production facilities in the presently-closed Kaesong industrial zone, declined 4.4 percent.
Samsung Electronics reversed earlier falls and turned up 0.36 percent, ending four sessions of falls since last week that had slashed the share price by nearly 10 percent.
Appetite for defensive issues was strong and LG Uplus shares, which saw the biggest trade volume on the main KOSPI, were up 2.1 percent.
Shares in Lotte Shopping, a discount chain and department store retailer, rose 2.2 percent and food processor CJ Corp advanced 1.3 percent.
The KOSPI 200 benchmark of core stocks was down 0.12 percent, while the junior KOSDAQ edged 0.4 percent higher. (AGENCIES)
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