ID :
199107
Thu, 08/04/2011 - 10:55
Auther :
Shortlink :
https://oananews.org//node/199107
The shortlink copeid
Seoul stocks hit 4-month low on grim U.S. growth outlook
SEOUL, Aug. 4 (Yonhap) -- South Korean stocks sank 2.31 percent to a four-month low Thursday as investor jitters over the U.S. economic outlook unleashed hefty sell-offs of exporters, analysts said. The local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) tumbled 47.79 points to 2,018.47, the lowest close since March 23 and the third straight session of declines. Trading volume was moderate at 347 million shares worth 7.53 trillion won (US$7.12 billion) with losers outpacing gainers 606 to 234.
"There weren't many buyers," said Kwak Joong-bo, an analyst at Samsung Securities Co. "Investors shunned stocks as they expect more falls."
The latest economic data that showed faltering U.S. growth and declines in consumer spending stoked fears that the global economy would plunge into a double-dip recession.
Even though U.S. markets finished higher on Wednesday on speculation that the Federal Reserve might introduce a new stimulus package, investor sentiment remained fragile.
"There is a deep suspicion on whether another round of quantitative easing will be effective," said Shinyoung Securities Co.'s analyst Lee Kyung-soo. "Unless we see a dramatic improvement in the U.S. employment report, it'll be difficult to stay upbeat."
Tech exporters were hit hardest, particularly by massive foreign sell-offs. Gadget giant LG Electronics plunged 5.06 percent to a fresh one-year low of 73,2000 won, and its affiliate LG Display sank 3.61 percent to 25,400 won.
Oil refiners lost ground as the global economic weakness is expected to put a crimp in overseas demand for petroleum products. Top refiner SK Innovation plummeted 7.98 percent to 196,000 won and S-Oil nosedived 8.41 percent to 141,500 won.
Mobile operators, which have relatively stable domestic revenue sources, finished in positive territory. Telecom titan KT rose 1.64 percent to 40,200 won and the largest mobile carrier SK Telecom added 0.69 percent to 14,500 won.
The local currency closed at 1,061.7 won to the greenback, down 1.3 won from Wednesday's close, as investors shunned risky assets on the bleak growth outlook, dealers said.
Bond prices, which move inversely to yield, closed higher. The yield on three-year Treasuries fell 0.05 percentage point to 3.77 percent and the return on the benchmark five-year government bods dropped 0.04 percentage point to 3.90 percent.
The benchmark Korea Composite Stock Price Index (KOSPI) tumbled 47.79 points to 2,018.47, the lowest close since March 23 and the third straight session of declines. Trading volume was moderate at 347 million shares worth 7.53 trillion won (US$7.12 billion) with losers outpacing gainers 606 to 234.
"There weren't many buyers," said Kwak Joong-bo, an analyst at Samsung Securities Co. "Investors shunned stocks as they expect more falls."
The latest economic data that showed faltering U.S. growth and declines in consumer spending stoked fears that the global economy would plunge into a double-dip recession.
Even though U.S. markets finished higher on Wednesday on speculation that the Federal Reserve might introduce a new stimulus package, investor sentiment remained fragile.
"There is a deep suspicion on whether another round of quantitative easing will be effective," said Shinyoung Securities Co.'s analyst Lee Kyung-soo. "Unless we see a dramatic improvement in the U.S. employment report, it'll be difficult to stay upbeat."
Tech exporters were hit hardest, particularly by massive foreign sell-offs. Gadget giant LG Electronics plunged 5.06 percent to a fresh one-year low of 73,2000 won, and its affiliate LG Display sank 3.61 percent to 25,400 won.
Oil refiners lost ground as the global economic weakness is expected to put a crimp in overseas demand for petroleum products. Top refiner SK Innovation plummeted 7.98 percent to 196,000 won and S-Oil nosedived 8.41 percent to 141,500 won.
Mobile operators, which have relatively stable domestic revenue sources, finished in positive territory. Telecom titan KT rose 1.64 percent to 40,200 won and the largest mobile carrier SK Telecom added 0.69 percent to 14,500 won.
The local currency closed at 1,061.7 won to the greenback, down 1.3 won from Wednesday's close, as investors shunned risky assets on the bleak growth outlook, dealers said.
Bond prices, which move inversely to yield, closed higher. The yield on three-year Treasuries fell 0.05 percentage point to 3.77 percent and the return on the benchmark five-year government bods dropped 0.04 percentage point to 3.90 percent.
