ID :
23459
Thu, 10/09/2008 - 13:03
Auther :
Shortlink :
https://oananews.org//node/23459
The shortlink copeid
Seoul shares gain on global rate cuts
SEOUL, Oct. 9 (Yonhap) -- South Korean stocks gained moderately in topsy-turvy trading late Thursday morning as investor sentiment was boosted by hopes that global interest rate cuts may calm financial turmoil, analysts said.
The benchmark Korea Composite Stock Price Index (KOSPI) inched up 9.74 points, or
0.76 percent, to 1,296.43 as of 11:20 a.m.
"Decisions to slash borrowing costs by central banks, including South Korea's,
seem to be soothing investor sentiment somewhat, as they hope it may relieve the
current liquidity crunch," said Bae Sung-young, an analyst at Hyundai Securities.
Against market expectations, the Bank of Korea slashed its key interest rate by
0.25 percentage point -- in line with overnight rate cuts by its U.S., European
and Asian counterparts -- in an effort to prevent global financial turmoil from
exacerbating an economic slowdown.
Bae warned, however, that Wall Street's failure on Wednesday to reverse its
downswing despite authorities' coordinated moves may drag on world economies
until after the U.S. presidential election.
Financials and construction shares benefited from the rate cut decision, with
Shinhan Financial Group soaring 6.74 percent and top builder Daewoo Engineering &
Construction rising more than 5 percent.
Tech exporters and automakers also rose due to the local currency's steep
devaluation against the greenback. Hynix Semiconductor soared 6.95 percent to
16,150 won and LG Display climbed 5.85 percent. Hyundai Motor and its affiliate
Kia Motors also traded higher.
Telecom stocks, however, traded lower. KTF, the nation's second-largest wireless
carrier, slumped 1.72 percent on news that top management officials have tendered
their resignations over the company's kick-back scandal. Its larger rival SK
Telecom shed 0.7 percent.
The local currency was trading at 1,437.45 won to the U.S. dollar as of 11:20
a.m., plunging 42.45 won from Wednesday's close, as offshore investors continued
their dollar buying amid a financial rout, according to dealers.
odissy@yna.co.kr
(END)
The benchmark Korea Composite Stock Price Index (KOSPI) inched up 9.74 points, or
0.76 percent, to 1,296.43 as of 11:20 a.m.
"Decisions to slash borrowing costs by central banks, including South Korea's,
seem to be soothing investor sentiment somewhat, as they hope it may relieve the
current liquidity crunch," said Bae Sung-young, an analyst at Hyundai Securities.
Against market expectations, the Bank of Korea slashed its key interest rate by
0.25 percentage point -- in line with overnight rate cuts by its U.S., European
and Asian counterparts -- in an effort to prevent global financial turmoil from
exacerbating an economic slowdown.
Bae warned, however, that Wall Street's failure on Wednesday to reverse its
downswing despite authorities' coordinated moves may drag on world economies
until after the U.S. presidential election.
Financials and construction shares benefited from the rate cut decision, with
Shinhan Financial Group soaring 6.74 percent and top builder Daewoo Engineering &
Construction rising more than 5 percent.
Tech exporters and automakers also rose due to the local currency's steep
devaluation against the greenback. Hynix Semiconductor soared 6.95 percent to
16,150 won and LG Display climbed 5.85 percent. Hyundai Motor and its affiliate
Kia Motors also traded higher.
Telecom stocks, however, traded lower. KTF, the nation's second-largest wireless
carrier, slumped 1.72 percent on news that top management officials have tendered
their resignations over the company's kick-back scandal. Its larger rival SK
Telecom shed 0.7 percent.
The local currency was trading at 1,437.45 won to the U.S. dollar as of 11:20
a.m., plunging 42.45 won from Wednesday's close, as offshore investors continued
their dollar buying amid a financial rout, according to dealers.
odissy@yna.co.kr
(END)
