Korea Composite Stock Price Index Drops 37.42 Points As Investors Continue Worry Over Global Economic Slowdown
The Korea Composite Stock Price Index (Kospi) on Wednesday drops 37.42 points or 1.89 percent, to 1,944.64, as investors continue to worry over the global economic slowdown, as per analysts.
Korea Joongang Daily reported Sept. 23 that the slowdown "dragged down Korean shares in response to a sharp decline in the China manufacturing Purchasing Managers' Index (PMI)."
"Initially, investors had been more fearful that the Federal Open Market Committee may raise the key rate this month," says Kyobo Securities Co. analyst Kim Hyung Ryeol, as noted by Yonhap News on Sept. 23.
He goes on, "Now, however, the hike has been delayed following growth uncertainties in emerging markets, which has left investors with even more reservations about the world economy."
A number of major cap shares of Kospi also declined. Samsung Electronics drops 1.22 percent to 1,131,000 won, Korea Electric Power Corporation (Kepco) declines 2.82 percent to 48,300 won, Samsung C&T weakens by 5.18 percent to 146,500 won, SK Hynix drops 0.57 percent and AmorePacific plunges 1.2 percent to 370,500 won.
In addition, Shinhan Financial drops 1.58 percent to 40,400 won and KB Financial declines 1.7 percent to 34,750 won. Also, Samsung Life Insurance plunges 1.44 percent to finish at 95,800 won.
Not only those, automakers and shipbuilders are also affected. Hyundai Motor slumps 4.27 percent to close at 157,000 won. Kia Motors and its auto-parts affiliate Hyundai mobis weaken by 3.4 percent to 51,200 won and 2.52 percent to 212,500 won respectively.
Daewoo Shipbuilding & Marine Engineering and Samsung Heavy Industries drop 3.41 percent to 6,800 won and 4.65 percent to 12,300 won respectively.
On the other hand, LG Chem and Naver are among the few gainers with the former increases 3.1 percent to 266,000 won and the latter raises 1.81 percent to 505,000 won.
In addition, the global economic slowdown has mixed impact on mobile carriers. SK Telecom and LG Uplus drop 1.15 percent and 2.04 percent respectively, while KT gains 0.51 percent.
The South Korean won closes at its lowest in almost two weeks at 1,191.35 won from 1,194.40 that was posted last September 10.
