ID :
208242
Tue, 09/20/2011 - 10:18
Auther :
Shortlink :
https://oananews.org//node/208242
The shortlink copeid
Seoul shares end 0.94 pct higher despite Italy's rating downgrade
SEOUL, Sept. 20 (Yonhap) -- South Korean stocks ended 0.94 percent higher on Tuesday as gains of tech firms and shipbuilders overshadowed fragile investor sentiment spurred by Italy's rating cut, analysts said. The local currency hit a nine-month low against the U.S. dollar.
After undergoing volatile trading, the benchmark Korea Composite Stock Price Index (KOSPI) rose 17.03 points to close at 1,837.97. Trading volume was moderate at 317.1 million shares worth 5.46 trillion won (US$4.74 billion) with gainers outpacing losers 441 to 369.
"Institutional buying lent some support to the Seoul market. Italy's rating cut gave some shocks to the global markets, but the market has factored in such a possibility to some degree and prospects for the Federal Reserve meeting cushioned the impact of the rating downgrade," said Park Seung-jin, an analyst at Samsung Securities Co.
South Korea's financial markets showed high volatility with its currency falling 0.99 percent to the dollar, hit by Italy's sovereign rating cut.
Before the Asian markets opened, Standard and Poor's on Tuesday downgraded Italy's credit rating by one notch, citing its weakening economic growth prospects. The rating cut spawned concerns that the eurozone debt crisis may be spreading to other countries in the region, sparking sell-offs of assets from emerging markets.
The eurozone debt crisis is raising fears about potential foreign capital outflows from the Korean market as the won's weakness could prompt foreign investors to sell Korean assets to cut losses. But market experts said foreign capital outflows have not been spotted, given that foreign investors snapped up local bonds in September.
The KOSPI declined as much as 1.49 percent at one point, but it reversed earlier losses, aided by institutional buying. Foreign investors sold a net 186.8 billion won worth of local stocks on the main bourse.
Investors are focusing on what kind of stimulus steps the Fed will lay out at a two-day policy meeting. Investors are also expected to pay keen interest to a meeting of finance chiefs from the Group of 20 nations to gauge what G20 members will do to stem the eurozone debt crisis.
STX Corp, a de facto holding firm of STX Group, closed flat at 16,300 won after rising as much as 6.75 percent. The group said on Monday that it has decided to drop its bid to buy a stake in Hynix Semiconductor Inc., citing global uncertainties.
Tech blue chips and shipbuilders outperformed the broader market. Market bellwether Samsung Electronics advanced 0.37 percent to 811,000 won and chip giant Hynix Semiconductor rose 3.1 percent to 21,650 won.
Industry leader Hyundai Heavy Industries added 1.32 percent to 307,000 won and its rival Daewoo Shipbuilding & Marine Engineering gained 1.28 percent to 118,550 won.
The local currency closed at 1,148.40 won to the greenback, down 11.4 won from Monday's close, as the eurozone debt fears spurred investors' appetite for safe assets, dealers said.
The won declined to an intra-day low of 1,156.50 at one point and closed at the lowest level since Dec. 27, 2010.
After undergoing volatile trading, the benchmark Korea Composite Stock Price Index (KOSPI) rose 17.03 points to close at 1,837.97. Trading volume was moderate at 317.1 million shares worth 5.46 trillion won (US$4.74 billion) with gainers outpacing losers 441 to 369.
"Institutional buying lent some support to the Seoul market. Italy's rating cut gave some shocks to the global markets, but the market has factored in such a possibility to some degree and prospects for the Federal Reserve meeting cushioned the impact of the rating downgrade," said Park Seung-jin, an analyst at Samsung Securities Co.
South Korea's financial markets showed high volatility with its currency falling 0.99 percent to the dollar, hit by Italy's sovereign rating cut.
Before the Asian markets opened, Standard and Poor's on Tuesday downgraded Italy's credit rating by one notch, citing its weakening economic growth prospects. The rating cut spawned concerns that the eurozone debt crisis may be spreading to other countries in the region, sparking sell-offs of assets from emerging markets.
The eurozone debt crisis is raising fears about potential foreign capital outflows from the Korean market as the won's weakness could prompt foreign investors to sell Korean assets to cut losses. But market experts said foreign capital outflows have not been spotted, given that foreign investors snapped up local bonds in September.
The KOSPI declined as much as 1.49 percent at one point, but it reversed earlier losses, aided by institutional buying. Foreign investors sold a net 186.8 billion won worth of local stocks on the main bourse.
Investors are focusing on what kind of stimulus steps the Fed will lay out at a two-day policy meeting. Investors are also expected to pay keen interest to a meeting of finance chiefs from the Group of 20 nations to gauge what G20 members will do to stem the eurozone debt crisis.
STX Corp, a de facto holding firm of STX Group, closed flat at 16,300 won after rising as much as 6.75 percent. The group said on Monday that it has decided to drop its bid to buy a stake in Hynix Semiconductor Inc., citing global uncertainties.
Tech blue chips and shipbuilders outperformed the broader market. Market bellwether Samsung Electronics advanced 0.37 percent to 811,000 won and chip giant Hynix Semiconductor rose 3.1 percent to 21,650 won.
Industry leader Hyundai Heavy Industries added 1.32 percent to 307,000 won and its rival Daewoo Shipbuilding & Marine Engineering gained 1.28 percent to 118,550 won.
The local currency closed at 1,148.40 won to the greenback, down 11.4 won from Monday's close, as the eurozone debt fears spurred investors' appetite for safe assets, dealers said.
The won declined to an intra-day low of 1,156.50 at one point and closed at the lowest level since Dec. 27, 2010.
