Kospi falls along with OECD’s outlook
Korea’s main bourse dipped as low as 1,972 on Thursday after the Organization for Economic Cooperation and Development (OECD) released a preliminary version of its economic outlook, projecting 3.8 percent gross domestic product growth in 2015 and 4.1 percent growth in 2016 for Korea. The numbers are lower than a previous forecast announced in May.However, the benchmark Kospi managed to rally to surpass 1,980, thanks to foreign investors’ purchasing that fended off retail investors’ offload. The index closed at 1,980.84 points, up 0.63 points or 0.03 percent.
Samsung Electronics climbed 0.92 percent to 1.2 million won ($1,085), while the conglomerate’s IT service provider, Samsung SDS, plunged 4.09 percent to 17,500 won.
The market’s No. 2 company by market capitalization, Hyundai Motor, added 0.29 percent to 174,500 won. Affiliate Kia Motors inched up 0.36 percent to 55,500 won. Hyundai Mobis lost 0.41 percent to 240,500 won.
Posco, the nation’s leading steelmaker, dipped 0.65 percent to 308,000 won. Hyundai Steel also declined 1.19 percent to 66,400 won.
Meanwhile, chemical companies were mixed. LG Chem dropped 0.23 percent to 214,000 won, while Lotte Chemical remained flat at 181,000 won. Hanwha Chemical added 0.75 percent to 13,500 won.
Major shipbuilders fell. Hyundai Heavy Industries lost 4.12 percent to 128,000 won. Samsung Heavy Industries fell 2.27 percent to 23,700 won. Daewoo Shipbuilding and Marine Engineering dropped 3.83 percent to 21,350 won. Hyundai Mipo Dockyard plunged 6.21 percent to 83,100 won.
As for portal sites, Naver remained flat at 753,000 won, while Daum Kakao fell 1.93 percent to 147,400 won.
The won appreciated to 1,106.5 to the dollar.
Government bonds advanced. The three-year yield fell 1 basis point to 2.1 percent and the ten-year yield dropped 2 basis points to 2.63 percent.
“The decline in consumer confidence will increase rate-cut bets,” according to Park Dong-jin, a fixed-income analyst at Samsung Futures. “That a state-run think tank has started to focus on deflation suggests the government may start to add to easing pressure.”
BY KIM EUN-JI, BLOOMBERG [eunjik@joongang.co.kr]
with the Korea JoongAng Daily
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