SEOUL, Nov 7: Seoul shares hit their lowest level in 4 weeks on Thursday morning, as investors were reluctant to bet on riskier assets ahead of key data and macroeconomic events later in the week, while a fall in Samsung Electronics added further pressure.
The Korea Composite Stock Price Index (KOSPI) was down 0.5 percent at 2,002.96 points by 0318 GMT after touching an intraday low 2,000.60, lowest level since Oct.10.
‘The correction that the market is facing will clear up once all the anticipated cues and data unfold,’ said Ko Seung-hee, an analyst at SK Securities. ‘Foreign buying will pick up to underpin the market by then.’
Investors are awaiting U.S. Data, including third-quarter GDP later in the day and non-farm payrolls data on Friday, as well as a European Central Bank meeting and China’s Communist Party plenum.
Foreign investors offloaded 76.7 billion won ($72.29 million) of local shares in the morning, poised to sell for a 4th straight session.
Samsung Electronics Co Ltd, the largest KOSPI component, dipped 1.4 percent to weigh on the main board following a 2.3 percent drop in the previous session.
Park Hyun, an IT analyst at Tong Yang Securities, said ‘What Samsung Electronics’ CFO said on Wednesday lacked new information, disappointing many who expected more.’
Samsung Electronics had vowed to double its dividend yield and invest in new technology and boost marketing at an analyst meeting on Wednesday.
Meanwhile, Hyundai Motor Co, the second largest component, rose 1.8 percent on news hardline candidates seeking to head the labour union had dropped out, raising hopes a moderate leadership would take over. Hyundai Motor had suffered numerous unionised walkouts since the union’s formation in 1987. Affiliate Kia Motors Corp gained 1.3 percent.
A local media report on a possible raise in public utility charges brought state-run energy shares higher, with Korea Electric Power Corp and Korea Gas Corp rising 3.2 percent and 4.3 percent, respectively.
South Korea’s stock market will close one hour later than usual, at 4 p.M. (0700 GMT), after opening an hour later than usual due to the national college entrance examination.
($1 = 1060.9500 Korean won)
(agencies)
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