Asian Markets A Sea of Red
Most Korean shares ended the day down, with steelmaker Posco (PKX) giving up 2.71%, to 610,000 won on a strengthening won, and Kookmin Bank (KB) a casualty of the broad sell-off in financials, diving 3.18%, to 70,000 won.
Shares in Hanarotelecom (HANAY) bucked the trend, rising 1.79%, to 8,510 won, after soaring in early trading by nearly 10%, on talk of Australia's Macquarie Bank buying a 39.4% stake in the company. Macquarie is expected to pay up to 13,000 won per share for 91.4 million shares, or a total investment of $1.3 billion.
Sun Hung Kai's Pang says that investors should hold off buying for the time being, and that the performance of Asian markets on Monday will depend on U.S. nonfarm payroll data due to be released later today. If the data is below expectations, investors can expect another broad sell-off, he says.
Pang is looking for a potential fall to 30,000 points for the Hang Seng on Monday, and short term for a pull-back to 28,000 points."At this level I would not recommend buying anything, but if the [Hang Seng] index falls to 28,000, you can buy anything you want because most of the stocks will have returned to their fair value." "Don't try to be a bargain hunter right now -- wait for it to fall," he adds.
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