ID :
211040
Tue, 10/04/2011 - 10:29
Auther :
Shortlink :
https://oananews.org//node/211040
The shortlink copeid
Seoul shares plunge on renewed Greek woes
SEOUL, Oct. 4 (Yonhap) -- South Korean shares tumbled 3.59 percent on Tuesday as investor sentiment was pummeled by mounting fears over Greece's debt crisis, analysts said. The local currency fell sharply against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) plunged 63.46 points to 1,706.19 on the first trading session of the week after closing for National Foundation Day on Monday. Trading volume was light at 296.7 million shares worth 6.6 trillion won (US$5.53 billion), with losers far outnumbering winners 786 to 97.
The bourse operator halted computerized trading of shares on the main KOSPI market after futures tumbled more than 5 percent. It was the fourth trading halt for the main bourse.
"The South Korean market was hit stronger by the Greek issue, as it was closed on Monday," said Won Sang-phil, an analyst at Tong Yang Securities Inc.
Greece said Monday that it will miss its budget deficit target this year and next, raising doubts over a scheduled international bailout and provoking a sharp sell-off in stock markets in the U.S. and Europe.
"The market was already aware of the Greek risk. This is not a new thing but the European leaders seemed to put off the solution of the Greek problem, disappointing investors," said Won. "If the eurozone washes its hands of the Greek issue, a great depression could come next."
However, the market could rebound anytime with the clearing of European uncertainties as the U.S. economy is showing signs of recovery on better-than-expected manufacturing data, he said.
Foreign investors sold a net 412.7 billion won worth of shares, snapping a four-session buying streak. Institutions continued to offload stocks worth a net 335.7 billion won, while retail investors scooped up a net 751.2 billion won.
Shares lost ground across the board, led by large-cap exporters and banks on a global economic recession stemming from European financial troubles that could erode their profitability.
Financials were among the biggest losers, with top banking group Woori Finance Holdings tumbling 5.07 percent to 9,730 won and its rival Shinhan Financial Group losing 5.95 percent to 39,500 won.
Leading shipyard Hyundai Heavy Industries dropped 4.98 percent to close at 267,000 won, and top shipper Hanjin Shipping declined 7.6 percent to 15,800 won.
Top carmaker Hyundai Motor shed 2.84 percent to 205,000 won and its affiliate Kia Motors fell 3.76 percent at 69,200 won.
After plunging to a yearly low of 1,208.2 won at one point, the local currency closed at 1,194 won against the greenback, down 15.9 won from Friday's close, amid growing investor appetite for safer assets, dealers said.
"The local currency picked up and closed below the 1,200 won level, thanks to suspected intervention and dollar sales by exporters," said Jeon Seung-ji of Samsung Futures Co., adding that the rate will fluctuate further this week on Europe's key rate and U.S. employment data.
brk@yna.co.kr
(END)
The benchmark Korea Composite Stock Price Index (KOSPI) plunged 63.46 points to 1,706.19 on the first trading session of the week after closing for National Foundation Day on Monday. Trading volume was light at 296.7 million shares worth 6.6 trillion won (US$5.53 billion), with losers far outnumbering winners 786 to 97.
The bourse operator halted computerized trading of shares on the main KOSPI market after futures tumbled more than 5 percent. It was the fourth trading halt for the main bourse.
"The South Korean market was hit stronger by the Greek issue, as it was closed on Monday," said Won Sang-phil, an analyst at Tong Yang Securities Inc.
Greece said Monday that it will miss its budget deficit target this year and next, raising doubts over a scheduled international bailout and provoking a sharp sell-off in stock markets in the U.S. and Europe.
"The market was already aware of the Greek risk. This is not a new thing but the European leaders seemed to put off the solution of the Greek problem, disappointing investors," said Won. "If the eurozone washes its hands of the Greek issue, a great depression could come next."
However, the market could rebound anytime with the clearing of European uncertainties as the U.S. economy is showing signs of recovery on better-than-expected manufacturing data, he said.
Foreign investors sold a net 412.7 billion won worth of shares, snapping a four-session buying streak. Institutions continued to offload stocks worth a net 335.7 billion won, while retail investors scooped up a net 751.2 billion won.
Shares lost ground across the board, led by large-cap exporters and banks on a global economic recession stemming from European financial troubles that could erode their profitability.
Financials were among the biggest losers, with top banking group Woori Finance Holdings tumbling 5.07 percent to 9,730 won and its rival Shinhan Financial Group losing 5.95 percent to 39,500 won.
Leading shipyard Hyundai Heavy Industries dropped 4.98 percent to close at 267,000 won, and top shipper Hanjin Shipping declined 7.6 percent to 15,800 won.
Top carmaker Hyundai Motor shed 2.84 percent to 205,000 won and its affiliate Kia Motors fell 3.76 percent at 69,200 won.
After plunging to a yearly low of 1,208.2 won at one point, the local currency closed at 1,194 won against the greenback, down 15.9 won from Friday's close, amid growing investor appetite for safer assets, dealers said.
"The local currency picked up and closed below the 1,200 won level, thanks to suspected intervention and dollar sales by exporters," said Jeon Seung-ji of Samsung Futures Co., adding that the rate will fluctuate further this week on Europe's key rate and U.S. employment data.
brk@yna.co.kr
(END)
