ID :
197829
Thu, 07/28/2011 - 11:05
Auther :
Shortlink :
https://oananews.org//node/197829
The shortlink copeid
Seoul shares drop 0.85 pct on U.S. debt woes
(ATTN: ADDS bond yields at bottom)
SEOUL, June 28 (Yonhap) -- South Korean stocks finished 0.85 percent lower on Thursday as investor sentiment remained fragile amid stalled U.S. debt talks, analysts said. The local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) shed 18.46 points to 2,155.85. Trading volume was moderate at 294.8 million shares worth 5.77 trillion won (US$5.49 billion), with losers outpacing gainers 477 to 353.
"As the White House and Republicans were locked in a stalemate over plans to raise the U.S. debt ceiling, investor sentiment remained fragile," said Bae Sung-young, a market analyst at Hyundai Securities Co.
Fears are rising that the world's largest economy could default on its debt as U.S. politicians remain split over how to raise the borrowing limit with an Aug. 2 deadline looming.
Despite the debt-ceiling deadlock, the amount of foreign selling was not that large, limiting the KOSPI's losses, Bae said.
Foreign investors sold a net 76.5 billion won worth of local stocks on the main stock market. Retail and institutional investors were net buyers.
Tech and bank losses weighed on the market. Market leader Samsung Electronics fell 0.95 percent to 837,000 won, and consumer electronics giant LG Electronics shed 2.74 percent to 81,500 won on its grim earnings outlook for the third quarter.
Asiana Airlines, the country's No. 2 carrier, lost 4.74 percent to 11,050 won after one of its cargo planes crashed into the sea off Jeju Island early Thursday, leaving two crew members missing.
Banks and brokerage houses lost ground after torrential rains inundated some of their branches a day earlier. Top banking group Woori Finance shed 1.39 percent to 14,150 won, and leading brokerage house Daewoo Securities fell 2.07 percent to 18,950 won.
But non-life insurers staged a technical rebound despite worries that they may face a surge in car insurance claims relating to damage from the downpours. Top non-life insurance firm Samsung Fire & Marine Insurance rose 0.85 percent to 238,000 won.
SK Communications, the country's No. 3 Web portal operator, lost 5.95 percent to 17,400 won as its Web sites were found to be hacked by unspecified attackers, causing a massive leak of customers' information.
The local currency closed at 1,051.7 won to the greenback, down 1.7 won from Wednesday's close, as concerns about the eurozone debt crisis spurred demand for the dollar, dealers said. The won weakened from a yearly high seen in the previous session.
The won's weakness came despite the central bank saying earlier in the day that Korea's current account surplus hit an eight-month high in June on record exports.
Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasuries shed 0.01 percentage point to 3.81 percent and the return on the benchmark five-year government bonds lost 0.02 percentage point to 3.98 percent.
SEOUL, June 28 (Yonhap) -- South Korean stocks finished 0.85 percent lower on Thursday as investor sentiment remained fragile amid stalled U.S. debt talks, analysts said. The local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) shed 18.46 points to 2,155.85. Trading volume was moderate at 294.8 million shares worth 5.77 trillion won (US$5.49 billion), with losers outpacing gainers 477 to 353.
"As the White House and Republicans were locked in a stalemate over plans to raise the U.S. debt ceiling, investor sentiment remained fragile," said Bae Sung-young, a market analyst at Hyundai Securities Co.
Fears are rising that the world's largest economy could default on its debt as U.S. politicians remain split over how to raise the borrowing limit with an Aug. 2 deadline looming.
Despite the debt-ceiling deadlock, the amount of foreign selling was not that large, limiting the KOSPI's losses, Bae said.
Foreign investors sold a net 76.5 billion won worth of local stocks on the main stock market. Retail and institutional investors were net buyers.
Tech and bank losses weighed on the market. Market leader Samsung Electronics fell 0.95 percent to 837,000 won, and consumer electronics giant LG Electronics shed 2.74 percent to 81,500 won on its grim earnings outlook for the third quarter.
Asiana Airlines, the country's No. 2 carrier, lost 4.74 percent to 11,050 won after one of its cargo planes crashed into the sea off Jeju Island early Thursday, leaving two crew members missing.
Banks and brokerage houses lost ground after torrential rains inundated some of their branches a day earlier. Top banking group Woori Finance shed 1.39 percent to 14,150 won, and leading brokerage house Daewoo Securities fell 2.07 percent to 18,950 won.
But non-life insurers staged a technical rebound despite worries that they may face a surge in car insurance claims relating to damage from the downpours. Top non-life insurance firm Samsung Fire & Marine Insurance rose 0.85 percent to 238,000 won.
SK Communications, the country's No. 3 Web portal operator, lost 5.95 percent to 17,400 won as its Web sites were found to be hacked by unspecified attackers, causing a massive leak of customers' information.
The local currency closed at 1,051.7 won to the greenback, down 1.7 won from Wednesday's close, as concerns about the eurozone debt crisis spurred demand for the dollar, dealers said. The won weakened from a yearly high seen in the previous session.
The won's weakness came despite the central bank saying earlier in the day that Korea's current account surplus hit an eight-month high in June on record exports.
Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasuries shed 0.01 percentage point to 3.81 percent and the return on the benchmark five-year government bonds lost 0.02 percentage point to 3.98 percent.
