ID :
211271
Wed, 10/05/2011 - 10:56
Auther :
Shortlink :
https://oananews.org//node/211271
The shortlink copeid
(LEAD) Seoul shares dip 2.33 pct on European concerns
(ATTN: ADDS bond yields at bottom)
SEOUL, Oct. 5 (Yonhap) -- South Korean stocks fell 2.33 percent on Wednesday as renewed European debt fears spurred a selling spree among foreigners and institutions, analysts said. The local currency gained against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) lost 38.67 points to 1,666.52. Trading volume was moderate at 330.9 million shares worth 7.56 trillion won (US$6.36 billion), with losers outnumbering gainers 661 to 201.
"Moody's cut the credit rating of Italy last night, escalating the region's debt fears," said Lim Dong-lak, an analyst at Hanyang Securities Co. "And rumors that Morgan Stanley would be a second Lehman Brothers extended the loss."
The KOSPI opened 0.72 percent higher on the back of strong Wall Street gains, underpinned by European leaders' policy coordination in supporting troubled banks and U.S. Fed Chairman Ben Bernanke's remark that the central bank is ready to take more steps to stimulate the economy. But the index soon shifted into negative territory.
"South Korea picked up early in the morning thanks to those issues from Europe and the U.S. but it failed to gain momentum later. Concerns about Europe's debt crisis and a second global financial crisis were stronger," said Lim.
Foreigners dumped a net 304 billion won worth of shares and institutions offloaded a net 71 billion won.
Shares lost ground across the board, led by shipbuilders and builders.
Leading shipyard Hyundai Heavy Industries plunged 4.68 percent to 254,500 won and Samsung Heavy Industries dropped 5.11 percent to close at 25,050 won.
Builders suffered greater losses, with GS Engineering & Construction plunging nearly by the daily limit of 15 percent on rumors that one of its contracts in a Middle Eastern country was canceled.
However, tech shares were rare winners in the bearish market, with the world's second largest handset maker Samsung Electronics rising 1.69 percent to close at 842,000 won and its smaller rival LG Electronics gaining 0.43 percent to 69,500 won.
The local currency closed at 1,190.4 won against the greenback, up 3.6 won from Tuesday's close, after the finance minster's remark that the authorities may intervene, dealers said. The won plunged to a 14-month low on the previous day.
Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasuries fell 0.02 percentage point to 3.44 percent and the return on the benchmark five-year government bonds slipped 0.01 percentage point to 3.54 percent.
brk@yna.co.kr
(END)
SEOUL, Oct. 5 (Yonhap) -- South Korean stocks fell 2.33 percent on Wednesday as renewed European debt fears spurred a selling spree among foreigners and institutions, analysts said. The local currency gained against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) lost 38.67 points to 1,666.52. Trading volume was moderate at 330.9 million shares worth 7.56 trillion won (US$6.36 billion), with losers outnumbering gainers 661 to 201.
"Moody's cut the credit rating of Italy last night, escalating the region's debt fears," said Lim Dong-lak, an analyst at Hanyang Securities Co. "And rumors that Morgan Stanley would be a second Lehman Brothers extended the loss."
The KOSPI opened 0.72 percent higher on the back of strong Wall Street gains, underpinned by European leaders' policy coordination in supporting troubled banks and U.S. Fed Chairman Ben Bernanke's remark that the central bank is ready to take more steps to stimulate the economy. But the index soon shifted into negative territory.
"South Korea picked up early in the morning thanks to those issues from Europe and the U.S. but it failed to gain momentum later. Concerns about Europe's debt crisis and a second global financial crisis were stronger," said Lim.
Foreigners dumped a net 304 billion won worth of shares and institutions offloaded a net 71 billion won.
Shares lost ground across the board, led by shipbuilders and builders.
Leading shipyard Hyundai Heavy Industries plunged 4.68 percent to 254,500 won and Samsung Heavy Industries dropped 5.11 percent to close at 25,050 won.
Builders suffered greater losses, with GS Engineering & Construction plunging nearly by the daily limit of 15 percent on rumors that one of its contracts in a Middle Eastern country was canceled.
However, tech shares were rare winners in the bearish market, with the world's second largest handset maker Samsung Electronics rising 1.69 percent to close at 842,000 won and its smaller rival LG Electronics gaining 0.43 percent to 69,500 won.
The local currency closed at 1,190.4 won against the greenback, up 3.6 won from Tuesday's close, after the finance minster's remark that the authorities may intervene, dealers said. The won plunged to a 14-month low on the previous day.
Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasuries fell 0.02 percentage point to 3.44 percent and the return on the benchmark five-year government bonds slipped 0.01 percentage point to 3.54 percent.
brk@yna.co.kr
(END)
