ID :
18900
Thu, 09/11/2008 - 10:24
Auther :
Shortlink :
https://oananews.org//node/18900
The shortlink copeid
Seoul shares fall on futures expiration
SEOUL, Sept. 11 (Yonhap) -- South Korean stocks fell late Thursday morning as institutions and foreign investors dumped most blue chips on concerns over fluctuations due to the expiration of futures and options, analysts said.
The benchmark Korea Composite Stock Price Index (KOSPI) shed 8.17 points, or 0.56 percent, to 1,456.81 as of 11:20 a.m.
"The key index, which opened lower as caution prevailed ahead of the central bank's rate meeting, fell further as uncertainty on the quadruple-witching day triggered selling by institutional and foreign investors," said Bae Sung-yung, an analyst at Dongbu Securities.
Bae was referring to the expiration on Thursday of stock index futures, stock index options, stock options and single stock futures. Quadruple witching days usually result in price swings.
The decision to leave the nation's key borrowing rate unchanged did not largely
affect the market, as most players anticipated a freeze, Bae noted.
Bank of Korea (BOK) Gov. Lee Seong-tae and his six fellow policymakers froze the
benchmark 7-day repurchase agreement rate at a nearly 8-year high of 5.25
percent. The BOK raised the key rate by a quarter percentage point in August to
control spiraling inflation, the first increase in a year.
"Accompanying comments by the BOK later in the day should provide some signs
as to the health of the economy," he said.
Finance issues lost the most, with top lender Kookmin Bank slumping nearly 3
percent and leading non-life insurer Samsung Fire & Marine falling more than
2.4 percent.
Telecom stocks were also dented. Leading mobile carrier SK Telecom slid 2.8
percent and smaller rival KTF also tumbled 3.59 percent.
Tech exporters and construction stocks, however, managed to gain ground. Samsung
Electronics added 0.7 percent and flat panel giant LG Display also rose 1.8
percent.
The local currency was trading at 1,103.9 won to the U.S. dollar as of 11:20
a.m., down 8.4 won from Wednesday's close.
odissy@yna.co.kr
(END)
The benchmark Korea Composite Stock Price Index (KOSPI) shed 8.17 points, or 0.56 percent, to 1,456.81 as of 11:20 a.m.
"The key index, which opened lower as caution prevailed ahead of the central bank's rate meeting, fell further as uncertainty on the quadruple-witching day triggered selling by institutional and foreign investors," said Bae Sung-yung, an analyst at Dongbu Securities.
Bae was referring to the expiration on Thursday of stock index futures, stock index options, stock options and single stock futures. Quadruple witching days usually result in price swings.
The decision to leave the nation's key borrowing rate unchanged did not largely
affect the market, as most players anticipated a freeze, Bae noted.
Bank of Korea (BOK) Gov. Lee Seong-tae and his six fellow policymakers froze the
benchmark 7-day repurchase agreement rate at a nearly 8-year high of 5.25
percent. The BOK raised the key rate by a quarter percentage point in August to
control spiraling inflation, the first increase in a year.
"Accompanying comments by the BOK later in the day should provide some signs
as to the health of the economy," he said.
Finance issues lost the most, with top lender Kookmin Bank slumping nearly 3
percent and leading non-life insurer Samsung Fire & Marine falling more than
2.4 percent.
Telecom stocks were also dented. Leading mobile carrier SK Telecom slid 2.8
percent and smaller rival KTF also tumbled 3.59 percent.
Tech exporters and construction stocks, however, managed to gain ground. Samsung
Electronics added 0.7 percent and flat panel giant LG Display also rose 1.8
percent.
The local currency was trading at 1,103.9 won to the U.S. dollar as of 11:20
a.m., down 8.4 won from Wednesday's close.
odissy@yna.co.kr
(END)
