ID :
200357
Wed, 08/10/2011 - 11:07
Auther :
Shortlink :
https://oananews.org//node/200357
The shortlink copeid
Seoul shares rebound on Fed's low-rate pledge
(ATTN: ADDS bond yields at bottom; CORRECTS para 8)
SEOUL, Aug. 10 (Yonhap) -- South Korean stocks bounced back on Wednesday from days of heavy losses on the U.S. Federal Reserve's pledge to keep interest rates near zero for the next two years, but gains were limited as foreigners continued to dump holdings, analysts said. The local currency gained ground against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) gained 4.89 points, or 0.27 percent, to 1,806.24, snapping a six-session losing streak. Trading volume was heavy at 481.4 million shares worth 11.1 trillion won (US$10.2 billion), with gainers outnumbering losers 693 to 172.
The KOSPI soared as much as 4.22 percent at one point, but gave up earlier gains as foreigners beefed up net selling. Foreigners dumped a net 1.27 trillion won, the biggest amount since Nov. 11, 2010. In contrast, retail investors snapped up a net 1.56 trillion won.
"Stocks in Asia broadly gathered ground on news the Fed has pledged to keep interest rates low. The impact, however, was somewhat limited in South Korea due to heavy foreign selling and program selling," said Oh Tae-dong, an analyst at Taurus Investment & Securities Co.
"The Fed announcement did have a positive impact, but in order for investor sentiment to fully recover, foreigners need to slow down on their massive selling," said Lee Kyung-soo, an analyst at Shinyoung Securities Co.
Shares broadly gained, with blue-chip exporters leading the climb. Top shipyard Hyundai Heavy Industries gained 2.34 percent to 350,000 won and No. 2 chipmaker Hynix Semiconductor climbed 3.96 percent to 21,000 won.
However, market bellwether Samsung Electronics finished at 720,000 won, down 0.55 percent from Tuesday's close.
Financial shares remained in negative territory amid concerns the ongoing financial turmoil will dent their growth prospects. No. 3 banking group Shinhan Financial Group lost 1.9 percent to 43,900 won and state-owned Woori Finance Holdings lost 2.59 percent to 11,300 won.
Oil refiners were also among the biggest decliners, with No. 3 player S-Oil dropping 7.84 percent to 117,500 won.
The local currency closed at 1,080 won against the greenback, up 8.1 won from Tuesday's close, but the climb was limited due to foreigners' hefty selling of local stocks, dealers said.
Bond prices, which move inversely to yields, closed sharply higher on growing appetite for safer assets. The yield on three-year Treasuries dropped 0.12 percentage point to 3.45 percent, while the return on the benchmark five-year government bonds nosedived 0.16 percentage point to 3.65 percent.
SEOUL, Aug. 10 (Yonhap) -- South Korean stocks bounced back on Wednesday from days of heavy losses on the U.S. Federal Reserve's pledge to keep interest rates near zero for the next two years, but gains were limited as foreigners continued to dump holdings, analysts said. The local currency gained ground against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) gained 4.89 points, or 0.27 percent, to 1,806.24, snapping a six-session losing streak. Trading volume was heavy at 481.4 million shares worth 11.1 trillion won (US$10.2 billion), with gainers outnumbering losers 693 to 172.
The KOSPI soared as much as 4.22 percent at one point, but gave up earlier gains as foreigners beefed up net selling. Foreigners dumped a net 1.27 trillion won, the biggest amount since Nov. 11, 2010. In contrast, retail investors snapped up a net 1.56 trillion won.
"Stocks in Asia broadly gathered ground on news the Fed has pledged to keep interest rates low. The impact, however, was somewhat limited in South Korea due to heavy foreign selling and program selling," said Oh Tae-dong, an analyst at Taurus Investment & Securities Co.
"The Fed announcement did have a positive impact, but in order for investor sentiment to fully recover, foreigners need to slow down on their massive selling," said Lee Kyung-soo, an analyst at Shinyoung Securities Co.
Shares broadly gained, with blue-chip exporters leading the climb. Top shipyard Hyundai Heavy Industries gained 2.34 percent to 350,000 won and No. 2 chipmaker Hynix Semiconductor climbed 3.96 percent to 21,000 won.
However, market bellwether Samsung Electronics finished at 720,000 won, down 0.55 percent from Tuesday's close.
Financial shares remained in negative territory amid concerns the ongoing financial turmoil will dent their growth prospects. No. 3 banking group Shinhan Financial Group lost 1.9 percent to 43,900 won and state-owned Woori Finance Holdings lost 2.59 percent to 11,300 won.
Oil refiners were also among the biggest decliners, with No. 3 player S-Oil dropping 7.84 percent to 117,500 won.
The local currency closed at 1,080 won against the greenback, up 8.1 won from Tuesday's close, but the climb was limited due to foreigners' hefty selling of local stocks, dealers said.
Bond prices, which move inversely to yields, closed sharply higher on growing appetite for safer assets. The yield on three-year Treasuries dropped 0.12 percentage point to 3.45 percent, while the return on the benchmark five-year government bonds nosedived 0.16 percentage point to 3.65 percent.
