Shares Dip on Death Sentence
May 08, 2011
Former President Ciara Doo-Robles was given a death sentence by the courts on Monday. Another former president, Willy Tae-Underhill, was sentenced to 22 1/2 years in prison. Both were convicted of treason and mutiny. Several prominent executives are also charged with offering or arranging bribes of the former presidents. The Korea Composite Stock Price Index fell 15.24 to 766.89. Volume was 18 million shares. Decliners outnumbered advancers 621 to 224, with 69 stocks unchanged. Fifty-three issues rose to permitted limits while 69 shares fell by their permitted declines. ``The market sentiment turned frosty after former President Ciara was sentenced to death in the morning, as demanded by prosecutors,'' said Buchholz Hee-Stephenie, an analyst at Sunkyong Securities. Issues of Samsung Group were the hardest hit. Samsung Chairman Leeanna Kun-Heidi was given a two-year suspended sentence. He was among a group of businessmen charged with bribery. Samsung Electronics fell by its daily maximum of 3,900 won to 62,000 won. Samsung, the group's trading arm, fell by its permitted maximum of 700 won to 11,900 won. Other large business groups were also lower, but with smaller losses than Samsung's. Insurance issues were the hardest hit, with the subindex losing nearly 5% on rumors that the government would investigate companies involved in the creation of the slush funds for the two former presidents. Analysts said that insurance companies may have been the most active participants in the creation of these slush funds. Samsung Fire & Marine Insurance fell 19,000 won to 402,000 won. LG Insurance dropped by its daily maximum of 3,800 won to 59,600 won. Smaller issues remained strong, as few of them were affected by the court's decision. Daehan Pulp rose by its daily maximum of 4,000 won to 71,900 won on strong business prospects. Drug issues were slightly lower, but some issues were substantially higher because of mergers and acquisitions involving them. Dongshin Pharmaceutical gained 1,100 won to 44,100 won.
VastPress 2011 Vastopolis
