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Kospi falls after North’s missile launch

Aug 30,2017
Seoul’s main bourse slightly retreated on Tuesday, pushed down by North Korea’s missile launch.

The benchmark Kospi fell 5.56 points, or 0.23 percent, to 2,364.74 on Tuesday.

“The market is now affected by North Korea’s provocations, tuning in with other overseas markets,” said Kim Byong-yun, an analyst at NH Investment & Securities. “Investors are paying close attention to how the situation will develop.”

The index fell by 1.6 percent, down to 2,332.85, at 11 in the morning but recovered in the afternoon.

Foreign investors net sold local stocks, offloading 263.4 billion won ($234.16 million). Investors scooped up 25.3 billion won worth of shares. Retail investors net bought 212.1 billion won in stocks.

Movements were mixed across the board but most large-cap shares were in negative terrain. By sector, automobile fell 1.1 percent while banking and securities each inched down 0.9 percent.

Market bellwether Samsung Electronics fell 0.04 percent down to end at 2,304,000 won.

Chipmaker SK Hynix also edged down 0.44 percent to 67,600 won. State-run energy company Korea Electric Power Corporation tumbled 1.13 percent to 43,850 won. Shinhan Financial Group and KB Financial Group each stepped down 1.50 percent and 1.23 percent to 52,600 won and 56,400 won.

Top automaker Hyundai Motor nudged down 0.35 percent while its sister company Kia Motors was down 0.42 percent to 35,750 won. Affiliate and parts maker Hyundai Mobis slipped 2.39 percent to 245,000 won.

Leading steel maker Posco, on the other hand, gained 1.35 percent to 339,000 won. Samsung Life Insurance inched up 0.42 percent to 118,500 won and KT&G nudged up 0.88 percent to 115,000 won.

The secondary Kosdaq was up 1.04 points, or 0.16 percent, compared to the previous trading day to close at 653.96.

The local currency closed at 1,126.40 won against the U.S. dollar, down 6.3 won from the previous session’s close.

The return on three-year government bonds rose by one basis point to 1.77 percent. The yield on 10-year bonds also went up by one basis point to 2.26 percent.

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