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.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
"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
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Capital Markets & Currencies
Bitcoin 'halving' has taken place: CoinGecko
Wall Street bonus rules return to regulatory agenda in third try
US: Nasdaq, S&P tumble as Netflix, chip stocks drag
Europe: L’Oreal gains cap third week of declines
China to facilitate Hong Kong IPOs and expand Stock Connect
Global equity funds see surge in outflows as rate cut hopes fade