ID :
187680
Fri, 06/10/2011 - 10:43
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Shortlink :
https://oananews.org//node/187680
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Seoul shares slump 1.19 pct on surprise rate hike
SEOUL, June 10 (Yonhap) -- South Korean stocks finished 1.19 percent lower on Friday as the central bank's surprise rate hike weighed down investor sentiment amid a lack of upward momentum, analysts said. The local currency inched up against the U.S. dollar.
After opening higher, the benchmark Korea Composite Stock Price Index (KOSPI) dropped 24.75 points to 2,046.67. Trading volume was moderate at 262.6 million shares worth 7.07 trillion won (US$6.5 billion), with losers outnumbering gainers 536 to 283.
"It's not that the Bank of Korea's rate hike was completely unexpected," said Lee Jae-man, an analyst at Tong Yang Securities Inc. "But the move damped investor appetite amid a lack of upward momentum from Europe or the U.S."
Earlier in the day, the Bank of Korea (BOK) raised the seven-day repo rate by a quarter percentage point to 3.25 percent in a bid to curb inflationary pressure. The move came in a delicate situation when domestic and global economic data indicated a slowdown in recovery.
Lee said local stocks may gain upward momentum if investors react positively to U.S. and China economic data scheduled to be released next week.
Shares lost ground across the board, with techs falling sharply on institutional selling. Market bellwether Samsung Electronics lost 1.62 percent to 851,000 won. Hynix Semiconductor, the world's No. 2 memory chip maker, tumbled 6.97 percent to 26,700 won amid ongoing speculation over its sale.
Chemicals were also among decliners with top polysilicon maker OCI slumping 6.63 percent to 408,500 won.
E-Mart, the country's No. 1 operator of discount chains, plunged 7.26 percent to 223,500 won on its first day of trading after being spun off from Shinsegae. In contrast, Shinsegae skyrocketed 14.95 percent to 407,500 won.
Analysts painted a rosy outlook for Shinsegae, citing rising purchases at department stores. They, however, were less optimistic on the discount retail business, as E-Mart is seeing slow growth and uncertainties in its China expansion.
Meanwhile, insurers closed higher on hopes they would benefit from higher interest rates. Top life insurer Samsung Life Insurance rose 1.62 percent to 94,300 won, and its affiliate Samsung Fire & Marine Insurance added 2.89 percent to 231,500 won.
The local currency closed at 1,082.6 won to the greenback, up 0.3 won from Thursday's close, as more offshore investors opted to pick up the local unit, dealers said.
After opening higher, the benchmark Korea Composite Stock Price Index (KOSPI) dropped 24.75 points to 2,046.67. Trading volume was moderate at 262.6 million shares worth 7.07 trillion won (US$6.5 billion), with losers outnumbering gainers 536 to 283.
"It's not that the Bank of Korea's rate hike was completely unexpected," said Lee Jae-man, an analyst at Tong Yang Securities Inc. "But the move damped investor appetite amid a lack of upward momentum from Europe or the U.S."
Earlier in the day, the Bank of Korea (BOK) raised the seven-day repo rate by a quarter percentage point to 3.25 percent in a bid to curb inflationary pressure. The move came in a delicate situation when domestic and global economic data indicated a slowdown in recovery.
Lee said local stocks may gain upward momentum if investors react positively to U.S. and China economic data scheduled to be released next week.
Shares lost ground across the board, with techs falling sharply on institutional selling. Market bellwether Samsung Electronics lost 1.62 percent to 851,000 won. Hynix Semiconductor, the world's No. 2 memory chip maker, tumbled 6.97 percent to 26,700 won amid ongoing speculation over its sale.
Chemicals were also among decliners with top polysilicon maker OCI slumping 6.63 percent to 408,500 won.
E-Mart, the country's No. 1 operator of discount chains, plunged 7.26 percent to 223,500 won on its first day of trading after being spun off from Shinsegae. In contrast, Shinsegae skyrocketed 14.95 percent to 407,500 won.
Analysts painted a rosy outlook for Shinsegae, citing rising purchases at department stores. They, however, were less optimistic on the discount retail business, as E-Mart is seeing slow growth and uncertainties in its China expansion.
Meanwhile, insurers closed higher on hopes they would benefit from higher interest rates. Top life insurer Samsung Life Insurance rose 1.62 percent to 94,300 won, and its affiliate Samsung Fire & Marine Insurance added 2.89 percent to 231,500 won.
The local currency closed at 1,082.6 won to the greenback, up 0.3 won from Thursday's close, as more offshore investors opted to pick up the local unit, dealers said.
