ID :
205943
Thu, 09/08/2011 - 10:56
Auther :
Shortlink :
https://oananews.org//node/205943
The shortlink copeid
(LEAD) Seoul shares end up 0.72 pct on eurozone bailout hopes
(ATTN: ADDS bond yields at bottom)
SEOUL, Sept. 8 (Yonhap) -- South Korean stocks finished 0.72 percent higher Thursday as investor sentiment was underpinned by a German court's decision to back eurozone bailout plans, analysts said. The local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 13.18 points to 1,846.64, extending a winning streak for a second day. Trading volume was moderate at 411 million shares worth 6.91 trillion won (US$6.44 billion) with losers leading gainers 461 to 369.
The KOSPI rose as much as 1.34 percent in early hours after the German court's ruling and subsequent rallies on the U.S. and European markets.
But the key index pared gains as investors took to caution ahead of U.S. President Barack Obama's speech before Congress slated for Thursday.
"Much of the expectations about Obama's speech were reflected in the previous day and the key interest rate freeze was no surprise," said Kwak Joong-bo, an analyst at Samsung Securities Co.
The Bank of Korea decided to hold the key interest rate steady for the third straight month, matching the market consensus.
"Compared with rallies in the U.S. and European markets, the local market's gain was rather small. The abrupt gains in the previous session prompted profit-taking sell-offs and some investors opted for reducing risky assets ahead of the Chuseok holiday."
South Korea's stock markets will be closed on Monday and Tuesday next week for the national holiday.
Institutional investors were the sole net buyers in the market, snatching up blue-chip tech and auto exporters. Market bellwether Samsung Electronics climbed 3.23 percent to 798,000 won and leading carmaker Hyundai Motor gained 1.26 percent to 201,500 won.
Hanjin Heavy Industries spiked 9.26 percent to 23,000 won on expectations that the company may hash out resolutions to the long-time conflicts with labor unionists.
Brokerages, however, plunged on speculations that they might seek capital increase to finance their investment banking businesses.
Daewoo Securities, which announced a massive capital increase plan on Wednesday after the market's close, dived by the daily limit of 14.91 percent to 11,700 won. Woori Investment & Securities also nosedived 14.94 percent to 11,100 won on rumors that it may follow suit.
The local currency closed at 1,075.1 won to the U.S. dollar, down 3.3 won from Wednesday's close, as investors added the greenback ahead of the impending speech on jobs and the economy by the U.S. president, dealers said.
Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasuries fell 0.05 percentage point to 3.4 percent and the return on the benchmark five-year government bonds also declined 0.05 percentage point to 3.48 percent.
SEOUL, Sept. 8 (Yonhap) -- South Korean stocks finished 0.72 percent higher Thursday as investor sentiment was underpinned by a German court's decision to back eurozone bailout plans, analysts said. The local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 13.18 points to 1,846.64, extending a winning streak for a second day. Trading volume was moderate at 411 million shares worth 6.91 trillion won (US$6.44 billion) with losers leading gainers 461 to 369.
The KOSPI rose as much as 1.34 percent in early hours after the German court's ruling and subsequent rallies on the U.S. and European markets.
But the key index pared gains as investors took to caution ahead of U.S. President Barack Obama's speech before Congress slated for Thursday.
"Much of the expectations about Obama's speech were reflected in the previous day and the key interest rate freeze was no surprise," said Kwak Joong-bo, an analyst at Samsung Securities Co.
The Bank of Korea decided to hold the key interest rate steady for the third straight month, matching the market consensus.
"Compared with rallies in the U.S. and European markets, the local market's gain was rather small. The abrupt gains in the previous session prompted profit-taking sell-offs and some investors opted for reducing risky assets ahead of the Chuseok holiday."
South Korea's stock markets will be closed on Monday and Tuesday next week for the national holiday.
Institutional investors were the sole net buyers in the market, snatching up blue-chip tech and auto exporters. Market bellwether Samsung Electronics climbed 3.23 percent to 798,000 won and leading carmaker Hyundai Motor gained 1.26 percent to 201,500 won.
Hanjin Heavy Industries spiked 9.26 percent to 23,000 won on expectations that the company may hash out resolutions to the long-time conflicts with labor unionists.
Brokerages, however, plunged on speculations that they might seek capital increase to finance their investment banking businesses.
Daewoo Securities, which announced a massive capital increase plan on Wednesday after the market's close, dived by the daily limit of 14.91 percent to 11,700 won. Woori Investment & Securities also nosedived 14.94 percent to 11,100 won on rumors that it may follow suit.
The local currency closed at 1,075.1 won to the U.S. dollar, down 3.3 won from Wednesday's close, as investors added the greenback ahead of the impending speech on jobs and the economy by the U.S. president, dealers said.
Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasuries fell 0.05 percentage point to 3.4 percent and the return on the benchmark five-year government bonds also declined 0.05 percentage point to 3.48 percent.
