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Trump’s remarks on FTA cut Kospi rally

Apr 29,2017
Seoul’s main bourse snapped from a six-day rally and fell slightly on Friday. Investor sentiment was dampened after U.S. President Donald Trump said Korea should pay $1 billion to operate a controversial U.S. missile shield, and called for the two countries’ free trade agreement to be revised or abolished entirely.

The benchmark index, the Kospi, closed at 2,205.44, down 4.02 points or 0.18 percent from the previous trading day.

“Improved earnings and a decelerating pace of decline in global oil prices help the local stock market rise,” said Hong Choon-wook, an analyst at Kiwoom Securities. “But investors were tempted to cash in gains, probably preventing the market from rising further.”

Foreigners and institutional investors scooped up local shares worth 21.8 billion won ($19.2 million) and 348.8 billion won each while retail investors offloaded 313.2 billion won.

By sector, securities fell 2.0 percent, and automobiles tumbled 1.9 percent.

Samsung Electronics, the country’s most valuable company, continued its upward momentum into a sixth trading day to reach a new record on Friday of 2,231,000 won, up 1.78 percent from Thursday. During the trading session, the share price reached as high as 2,290,000 won.

The tech behemoth announced a day earlier that it would scrap plans to convert to a holding company structure and said it would buy back 9.3 trillion won of its own shares.

The stocks of automaker Hyundai Motor Group’s companies remained in negative terrain. Hyundai Motor continued to fall from the previous day, down 2.04 percent to 144,000 won, and its affiliate Kia Motors nudged down 0.43 percent to end at 34,850 won. Auto parts supplier Hyundai Mobis shed 2.20 percent to close at 222,000 won.

The secondary Kosdaq index also slipped, down 2.87 points or 0.45 percent, to close at 628.24, despite the comparably tech-heavy Nasdaq hitting a fresh record.

The local currency closed at 1,137.90 won against the U.S. dollar, down 7.8 won from the previous session’s close.

The yield on three-year and 10-year government bonds remained fixed at 1.68 percent and 2.20 percent.

BY CHOI HYUNG-JO, YONHAP [choi.hyungjo@joongang.co.kr]