South Korean tourism stocks tumble on China travel curbs

South Asia Tourism Market 

the main Seoul bourse slid on investor confidence weakened after an announcement of Korea Tourism Organization that the Chinese government has ordered local travel agencies to reduce the number of tourists visiting Korea. The Kospi closed at 2,037.17 on Tuesday, down 10.57 points, or 0.52 percent, from the previous day. Retail investors pushed the index down by offloading 173.4 billion won ($ 152.9 million) worth of shares. Foreign investors also sold 61 billion won. Institutional investors prevented the index from falling further by purchasing 242.6 billion won in shares.

The automaker Hyundai Motor firmed 2.6 percent to 138,000 won on the back of his greatness model new flagship, he unveiled on Tuesday. auto parts affiliate Hyundai Mobis rode the wave, gaining 2.1 percent to end the day at ₩ 267.000. China's decision to impose restrictions on travel low cost and reduce the number of people traveling to Korea 20 percent received a significant blow to cosmetics companies, which rely heavily on Chinese buyers. the largest manufacturer of cosmetics in the country, AmorePacific, fell 7.12 percent to ₩ 345,500, and LG Household and Healthcare fell 8.34 percent to ₩ 846,000. Hotel Shilla also took a hit, falling 6.94 percent very ₩ 57,700 to.

The secondary Kosdaq fell for the fourth straight trading day to close at 640.17, down 7.71 points, or 1.19 percent, from the previous day. It was the lowest point in the index in eight months. pharmaceuticals entrained by the index, with 0.48 percent slip Celltrion to ₩ 103,700 and Medytox Komipharm and each loss of 0.24 percent and 3 percent and ₩ 41,500 ₩ 378.300. The Korean won weakened 0.2 percent to 1,133.5 against the dollar on investor concerns about China's tourism decision.

What CEO say about this trend

"The issue is painful," said Lee Seung-jun, the CEO of active investment in Samsung Asset Management. "The tax-free operators will bear the brunt." bond yields three-year government rose one basis point to 1.4 percent, while the yield on the 10-year bond rose three basis points to 1.64 percent.

source Nikkei Asian Review-

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