ID :
199287
Fri, 08/05/2011 - 11:22
Auther :
Shortlink :
https://oananews.org//node/199287
The shortlink copeid
U.S. recession woes, Europe crisis jolt S. Korean markets
(ATTN: ADDS bond yields at bottom)
SEOUL, Aug. 5 (Yonhap) -- South Korean financial markets took a beating from simmering jitters over a possible U.S. recession and the European debt crisis on Friday, with the key stock index diving to a five-month low and the local currency falling against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) plunged 3.7 percent, or 74.72 points, to 1,943.75, the lowest close since March 15. Trading volume renewed a three-month high of 475 million shares, worth 10.29 trillion won (US$9.64 billion), with losers trumping gainers 805 to 66.
"It was the worst day since the 2008 financial crisis," said Lee Young-won, an analyst at HMC Investment Securities Co. referring to the global credit crunch sparked by U.S. investment banking giant Lehman Brothers. "In four days, we lost more than 200 points. This kind of shock doesn't happen often."
The key index lost 228.45 points from Monday's close.
In the wake of steep overnight losses on Wall Street, the KOSPI nosedived in the morning session, falling as much as 4.85 percent from the previous session's close.
"Investors are fretting about possible U.S. monetary tightening while they are also doubtful that the U.S. government can do anything anymore if things get worse from here," said Lee Sun-yup, an analyst at Shinhan Investment Corp.
"Interest rates have remained zero and two rounds of stimulus packages have been thrown into the market already."
Foreign and retail investors engaged in panic selling, sending all sectors sharply lower. Institutional investors and pension funds were rare buyers in the bear market.
South Korean exporters were hit hardest by the worries over the U.S. economy and Europe's debt crisis, which are two major trading partners of the Asian country.
Shipyards were the biggest losers. Daewoo Shipbuilding & Marine Engineering plunged 10.44 percent to 30,450 won and Hyundai Heavy Industries, the world's largest shipbuilder, sank 5.75 percent to 352,500 won.
Suppliers of flat panels, which are used in TVs, mobile devices and other electronics, also suffered huge losses. Top liquid crystal display (LCD) maker Samsung Electronics dropped 3.9 percent to 789,000 won and its smaller rival LG Display tumbled 7.09 percent to 23,600 won.
Leading oil refiners SK Innovation finished at 185,000 won, down 5.61 percent, and S-Oil retreated 7.77 percent to 130,500 won.
The local currency finished at 1,067.4 won to the U.S. dollar, down 5.7 won from Thursday's close, as overseas investors shunned the domestic stock markets, dealers said.
Bond prices, which move inversely to yield, closed sharply higher. The yield on three-year Treasuries sank 0.16 percentage point to 3.61 percent and the return on the benchmark five-year government bods dropped 0.13 percentage point to 3.77 percent.
SEOUL, Aug. 5 (Yonhap) -- South Korean financial markets took a beating from simmering jitters over a possible U.S. recession and the European debt crisis on Friday, with the key stock index diving to a five-month low and the local currency falling against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) plunged 3.7 percent, or 74.72 points, to 1,943.75, the lowest close since March 15. Trading volume renewed a three-month high of 475 million shares, worth 10.29 trillion won (US$9.64 billion), with losers trumping gainers 805 to 66.
"It was the worst day since the 2008 financial crisis," said Lee Young-won, an analyst at HMC Investment Securities Co. referring to the global credit crunch sparked by U.S. investment banking giant Lehman Brothers. "In four days, we lost more than 200 points. This kind of shock doesn't happen often."
The key index lost 228.45 points from Monday's close.
In the wake of steep overnight losses on Wall Street, the KOSPI nosedived in the morning session, falling as much as 4.85 percent from the previous session's close.
"Investors are fretting about possible U.S. monetary tightening while they are also doubtful that the U.S. government can do anything anymore if things get worse from here," said Lee Sun-yup, an analyst at Shinhan Investment Corp.
"Interest rates have remained zero and two rounds of stimulus packages have been thrown into the market already."
Foreign and retail investors engaged in panic selling, sending all sectors sharply lower. Institutional investors and pension funds were rare buyers in the bear market.
South Korean exporters were hit hardest by the worries over the U.S. economy and Europe's debt crisis, which are two major trading partners of the Asian country.
Shipyards were the biggest losers. Daewoo Shipbuilding & Marine Engineering plunged 10.44 percent to 30,450 won and Hyundai Heavy Industries, the world's largest shipbuilder, sank 5.75 percent to 352,500 won.
Suppliers of flat panels, which are used in TVs, mobile devices and other electronics, also suffered huge losses. Top liquid crystal display (LCD) maker Samsung Electronics dropped 3.9 percent to 789,000 won and its smaller rival LG Display tumbled 7.09 percent to 23,600 won.
Leading oil refiners SK Innovation finished at 185,000 won, down 5.61 percent, and S-Oil retreated 7.77 percent to 130,500 won.
The local currency finished at 1,067.4 won to the U.S. dollar, down 5.7 won from Thursday's close, as overseas investors shunned the domestic stock markets, dealers said.
Bond prices, which move inversely to yield, closed sharply higher. The yield on three-year Treasuries sank 0.16 percentage point to 3.61 percent and the return on the benchmark five-year government bods dropped 0.13 percentage point to 3.77 percent.
