Asian Economic News
South Korean Market Declines Sharply On Dubai Debt Worries
11/26/2009 10:18 PM ET
(RTTNews) -
The South Korean stock market is trading deep down in the red on Friday with stocks cutting across various sectors declining sharply amid growing concerns about Dubai's debt problems. As Wall Street was closed overnight on Thanksgiving Day holiday, investors are tracking cues from European markets and indulging in heavy selling in financial stocks.
The benchmark KOSPI index is currently down 39.5 points or 2.47% at 1,560. On Thursday, the index had ended lower by around 12 points or 0.77% at 1,599.5.
Key bank stocks Woori Finance, Shinhan Financial, KB Financial and Korea Exchange Bank are trading lower by 3.5%-4%. According to reports, South Korean financial institutions have an exposure of around US$88 million to Dubai, with exposure to Dubai World standing at about US$32 million.
Shipping stocks Hyundai Heavy Industries, Samsung Heavy Industries, Daewoo Shipbuilding and STX Pan Ocean are down 3%-4.5% from their previous closing prices.
Among tech stocks, heavyweight Samsung Electronics is down with a loss of 1.3%, Hynix Semiconductor is losing about 1.2%, LG Electronics is trading lower by 1.4% and LG Display LCD is down 2.6%.
Automobile stocks Kia Motor, Ssangyong Motor and Hyundai Motor are down 1.3%-3%. Airliners Korean Air and Asiana Airlines are trading lower by 1.7% and 2% respectively.
Among oil stocks, SK Holdings is down nearly a percent, while S-Oil is trading 2% down. KEPCO is also down by about 2%. Steel stocks Hyundai Steel and POSCO are trading notably lower. Telecom stocks are also exhibiting weakness.
Among other markets in the Asia-Pacific region, Australia, Hong Kong, Japan and Taiwan are down with sharp losses. Shanghai and New Zealand are also trading notably lower. Markets across the region had mostly ended lower on Thursday.
On Thursday, the European markets fell sharply, as banking stocks tumbled amid worries about debt problem at the Dubai World, and commodity stocks slipped after crude oil and metals prices dropped. The U.K.'s FTSE 100 index fell 3.18% to 5,194.13, while France's CAC 40 index slipped 3.41% to 3,679.23 and Germany's DAX index dropped 3.25% to 5,614.17.
The U.S. markets were closed on Thursday due to Thanksgiving Day holiday.
by RTT Staff Writer
For comments and feedback: contact editorial@rttnews.com
|
|