SEOUL: South Korean shares dipped 0.75 percent Tuesday as a free-fall in oil prices dampened investors’ appetite for risky assets. The local currency declined to a two month low against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) fell 14.63 points to 1,949.04. Trade volume was slim at 399.5 million shares worth 3.57 trillion won (US$3.03 billion), with losers far outnumbering gainers 643 to 186.
“Investors are seeking safer investments as the global crude prices hit a near seven-year low last night,” said analyst Kim Dae-jun from Korea Investment & Securities Co.
“Also, a strong U.S. dollar has encouraged foreigners to sell local shares ahead of a rate-setting meeting of the Federal Reserve.”
Foreigners offloaded a net 190.2 billion won worth of shares to extend their selling streak to a fifth straight session.
Tech firms closed in negative territory, with chipmaker SK hynix losing 1.63 percent to 30,200 won and flat panel maker LG Display sliding 1.54 percent to 25,500 won.
Pharmaceutical shares fueled the downside, with Hanmi Science sinking 3.78 percent to 140,000 won and Green Cross Holdings slumping 5.24 percent to 39,750 won.
Top steelmaker POSCO dipped 1.77 percent to 166,500 won and Korea Zinc, the largest zinc smelter, retreated 2.7 percent to 451,000 won.
Samsung Engineering soared 13.98 percent to 15,900 won following a plan to sell new shares to improve its financial status.
The Korean won ended at 1,178.6 won against the greenback, down 10.4 won from Monday’s close as investors scooped up the safer asset ahead of an imminent rate hike by the U.S., dealers said. It marked the lowest won-dollar rate since Oct. 2 when it finished at 1,180.7 won.
