Shipyards offset financials’ drop on Kospi

The benchmark Kospi rose 0.42 points to 1,336.81 after plunging to

“Overnight plunges in U.S. markets set a gloomy tone ... but investors saw it as a chance to pick up beaten-down shares,” said Choi Soon-ho, an analyst at Eugene Investment and Securities. “Optimism on first-quarter corporate earnings also seemed to be reflected, sending major tech shares higher.”

Shipyards advanced on expectations demand will increase as a Brazilian state-run oil company plans to buy new vessels. Samsung Heavy Industries jumped 3.41 percent to 31,800 won, while Hyundai Heavy Industries ended up 0.47 percent.

“Hopes of new orders, including from Petrobras, combined with a recovery in shipping rates and used vessel transaction volume, drove shipyard stocks higher up today,” said Park Chang-suk, a fund manager at NH-CA Asset Management in Seoul, which oversees the equivalent of $8.1 billion in assets.

Second-ranked tech exporter LG Electronics rose 0.95 percent after reporting 197.6 billion won in first-quarter net losses, a smaller loss compared with three months earlier. Flat-panel maker LG Display also gained 0.94 percent. Financial shares, however, weighed on the market as investor sentiment was hurt by the sharp declines in major banks on Wall Street. KB Financial Group, which controls top lender Kookmin Bank, plunged 3.12 percent, and Woori Finance Holdings, the parent of Woori Bank, lost 1.96 percent.

Steel and auto companies were also among the decliners, with industry leader Posco losing 2.3 percent. Top carmaker Hyundai Motor lost 2.12 percent while its affiliate, Kia Motors, closed down 2.14 percent at 9,590 won. Kia had its debt rating cut to junk level at Moody’s Investors Service on the global auto slump and a weaker won. The carmaker was lowered one grade to Ba1, the highest non-investment rating, Moody’s said in a statement.

The local currency finished at 1,349.5 won to the dollar, down 14.5 from Monday’s close, as investor worries over instability in the financial sector increased, dealers said.

Source: Yonhap