ID :
208536
Wed, 09/21/2011 - 11:18
Auther :
Shortlink :
https://oananews.org//node/208536
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Seoul shares end 0.89 pct higher on Fed hopes
SEOUL, Sept. 21 (Yonhap) -- South Korean stocks ended 0.89 percent higher on Wednesday as hopes that the Federal Reserve may unveil steps to boost the fragile U.S. economy overshadowed the eurozone debt woes, analysts said. The local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 16.31 points to close at 1,854.28. Trading volume was moderate at 293.4 million shares worth 5.88 trillion won (US$5.12 billion) with gainers outpacing losers 523 to 287.
"Foreign investors' buying lent support to the market although gains were curtailed on retail investors' profit-taking," said Kwak Joong-bo, a market analyst at Samsung Securities Co.
"Sentiment was lifted partly because of expectations that the Fed may unveil steps to bolster its weakening economy this week."
The KOSPI rose as much as 1.73 percent at one point, aided by foreign purchases of local stocks. Foreign investors bought a net 258.7 billion won worth of Seoul stocks on the main bourse.
But the eurozone debt crisis continued to weigh on sentiment, increasing volatility in the financial markets.
Strains in the markets increased as the local currency sharply depreciated against the dollar and foreign bonds funds posted some outflows.
According to data by the financial watchdog, European funds worth 958 billion won flowed out of the Korean market in the first 20 days of this month.
Market players await whether the Fed will frame stimulus measures at a planned 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 member countries will do to alleviate the eurozone debt crisis.
Carmakers and oil refiners gained ground. Leading carmaker Hyundai Motor advanced 1.2 percent to 211,000 won and its affiliate Kia Motors added 0.98 percent to 72,200 won.
Bank shares rose on investors' belief that the recent suspension of ailing savings banks would have limited impact on the local banking sector. Top banking group KB Financial Group added 1.02 percent to close at 39,500 won and its rival Woori Finance rose 1.63 percent to 10,000 won.
However, top mobile carrier SK Telecom declined 1 percent to 149,000 won as STX Group's departure from the bidding process to buy Hynix Semiconductor left SK Telecom as the sole bidder. Chip giant Hynix Semiconductor fell 0.23 percent to 21,600 won.
The local currency closed at 1,148.40 won to the greenback, down 11.4 won from Tuesday's close, as offshore investors snapped up the greenback on risk aversion, dealers said.
The Korean unit fell to its lowest level since Dec. 24, 2010.
Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasuries rose 0.01 percentage points to 3.5 percent and the return on the benchmark five-year government bonds added 0.02 percentage point to 3.63 percent.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 16.31 points to close at 1,854.28. Trading volume was moderate at 293.4 million shares worth 5.88 trillion won (US$5.12 billion) with gainers outpacing losers 523 to 287.
"Foreign investors' buying lent support to the market although gains were curtailed on retail investors' profit-taking," said Kwak Joong-bo, a market analyst at Samsung Securities Co.
"Sentiment was lifted partly because of expectations that the Fed may unveil steps to bolster its weakening economy this week."
The KOSPI rose as much as 1.73 percent at one point, aided by foreign purchases of local stocks. Foreign investors bought a net 258.7 billion won worth of Seoul stocks on the main bourse.
But the eurozone debt crisis continued to weigh on sentiment, increasing volatility in the financial markets.
Strains in the markets increased as the local currency sharply depreciated against the dollar and foreign bonds funds posted some outflows.
According to data by the financial watchdog, European funds worth 958 billion won flowed out of the Korean market in the first 20 days of this month.
Market players await whether the Fed will frame stimulus measures at a planned 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 member countries will do to alleviate the eurozone debt crisis.
Carmakers and oil refiners gained ground. Leading carmaker Hyundai Motor advanced 1.2 percent to 211,000 won and its affiliate Kia Motors added 0.98 percent to 72,200 won.
Bank shares rose on investors' belief that the recent suspension of ailing savings banks would have limited impact on the local banking sector. Top banking group KB Financial Group added 1.02 percent to close at 39,500 won and its rival Woori Finance rose 1.63 percent to 10,000 won.
However, top mobile carrier SK Telecom declined 1 percent to 149,000 won as STX Group's departure from the bidding process to buy Hynix Semiconductor left SK Telecom as the sole bidder. Chip giant Hynix Semiconductor fell 0.23 percent to 21,600 won.
The local currency closed at 1,148.40 won to the greenback, down 11.4 won from Tuesday's close, as offshore investors snapped up the greenback on risk aversion, dealers said.
The Korean unit fell to its lowest level since Dec. 24, 2010.
Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasuries rose 0.01 percentage points to 3.5 percent and the return on the benchmark five-year government bonds added 0.02 percentage point to 3.63 percent.
