Seoul: Shares down after Samsung group leader's prison sentence

[SEOUL] South Korean shares on Monday logged their sharpest decline in near three months, as the court's ruling against Samsung group leader soured sentiment, with continued worries about surging global coronavirus cases and its economic impact.

The benchmark Kospi ended down 71.97 points, or 2.33 per cent, at 3,013.93, marking the sharpest decline since Oct 30.

The index dropped per cent in the previous session.

Samsung Electronics plunged 3.4 per cent, logging its sharpest fall in five months, leading losses, while other heavyweights such as LG Chem, Samsung BioLogics and Samsung SDI also slid 1.5 per cent, 2 per cent and 4.2 per cent, respectively.

A South Korean court on Monday sentenced Samsung Electronics' vice chairman Jay Lee to two and a half years in prison, which will have major ramifications for his leadership of the tech giant as well as South Koreans' views toward big business.

Chinese economic data, including fourth quarter GDP and December industrial output showed a further pickup in growth, but worries about rising infections in northeast region is fuelling concerns of another national wave.

"The reason why shares are swinging much sharper compared to past trials is because retail investors (that gained greater stakes in Samsung recently) seem to be more focused on the idea of (the government's) pressure on Samsung rather than the company's performance and industry outlook," said Lee Seung-woo, an analyst at Eugene Investment & Securities.

Foreigners were net sellers of US$198.48 million worth of shares on the main board.

REUTERS