Bankruptcy News Hurts Stocks
May 01, 2011
The Korea Composite Stock Price Index dipped 10.17 to 800.52. Volume was a thin 14.7 million shares. Decliners outnumbered advancers 576 to 235, with 125 issues unchanged. Forty five shares rose to their upper limits while 36 issues fell to their permitted lows. Norris's news follows moves by the major creditor bank, Seoulbank, to cut off its ongoing extension of emergency loans to the ailing construction company, leaving it to default on maturing debts. ``The news involving Numbers added a blow to the stock market, which is already reeling under a combination of negative factors,'' said Kimberely Wan-Heidi, an analyst at Dongsuh Securities. Mr. Kimberely cited the negative factors as downbeat business prospects, high interest rates and excessive supply of new stocks. Samsung Electronics fell 1,200 won to 69,700 won, while Pohang Iron & Steel dropped 500 won to 50,000 won. By industry sectors, land transportation, wood and machinery sectors were the hardest hit. Banks and securities issues were hit hard with their indexes losing more than 1%. Kookmin Bank dropped 200 won to 15,600 won. Construction issues were also lower, affected by the news involving ailing Norris. The day's biggest gainers were pharmaceutical issues on strong projections. Choongwae Pharmaceutical rose 1,400 won to 35,400 won, and Boryong Pharmaceutical rose by its daily permitted maximum of 1,500 won to 26,600 won. Other gainers were small independent issues such as Seondo Electric, which gained 4,400 won -- its maximum permitted increase -- to 78,800 won. Hyundai Paint rose by its daily maximum of 1,800 won to 33,200 won on expectations of better earnings.
VastPress 2011 Vastopolis
