ID :
26325
Fri, 10/24/2008 - 16:18
Auther :
Shortlink :
https://www.oananews.org//node/26325
The shortlink copeid
Seoul shares crash 10.6 pct on persistent jitters
(ATTN: ADDS bond yields at bottom; CHANGES closing FX rate in last para 3)
SEOUL, Oct. 24 (Yonhap) -- South Korean stocks closed more than 10 percent lower Friday as unrelenting sell-offs of blue chips continued amid a grim economic outlook, analysts said. The local currency depreciated against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) plummeted 110.96 points,
or 10.57 percent, to 938.75, dropping below the 1,000-mark for the first time
since June 30, 2005. Volume was moderate at 437.5 million shares worth 5.36
trillion won (US$3.75 billion), with losers outpacing gainers 842 to 41.
"The fallout rate of foreign investment in the local bourse was exacerbated at a
rapid level, as a projected slowdown in the global economy continues to plague
global markets," said Seo Dong-pil, an analyst at Hana Daetoo Securities.
The South Korean economy grew 3.9 percent in the third quarter, the Bank of Korea
(BOK), the nation's central bank, reported in a preliminary tally earlier in the
day. It marked the weakest growth since the second quarter of 2005 when it rose
3.4 percent on-year.
In an accompanying statement, the bank forecasted that Asia's fourth-largest
economy is likely to grow "less than the BOK's previous estimate of 4.6 percent"
this year.
The KOSPI has more than halved from its historic high of 2,085 points in Nov.
2007, largely on selling by offshore investors. Foreign selling amounted to 34.3
trillion won so far this year, according to the Korea Exchange, the bourse
operator.
Steep losses in earlier trading forced the Korea Exchange to suspend program
trading for five minutes, after the main index's futures prices fell more than 5
percent.
Many blue-chips suffered hefty losses -- some by double-digit percentages -- on
massive selling by foreign investors.
Shipbuilders were hit hard, with the top three players each dropping just under
the daily limit of 15 percent during the session. Industry leader Hyundai Heavy
Industries slump 14.76 percent to 115,500 won and second biggest Samsung Heavy
Industries slid 14.72 percent to 13,900 won.
Exporters were also severely dented as their sluggish earnings reports added to
global economic concerns. Market leader Samsung Electronics fell 13.76 percent to
407,500 won after announcing that its third-quarter bottom line fell more than 40
percent from last year. Hyundai Motor slid by 7.89 percent to 46,700 won.
Steel and construction shares also finished in the red, with the biggest steel
producer POSCO falling 12.16 percent to 242,000 and No. 2 builder Hyundai
Engineering and Construction dropping 14.97 percent to 38,350 won.
The local currency closed at 1,422 won to the dollar, down 13.2 won from
Thursday's close, as investor sentiment was hurt by sharp falls in local stocks
and growing concerns over the market's negative impact on the real economy,
dealers said.
The Korean currency has declined almost 34 percent to the greenback so far this
year.
Bond prices, which move inversely to yields, closed mixed. The return on
three-year Treasuries remained unchanged at 4.84 percent and the benchmark yield
on five-year government bonds gained 0.02 percentage point to 4.90 percent.
odissy@yna.co.kr
(END)
SEOUL, Oct. 24 (Yonhap) -- South Korean stocks closed more than 10 percent lower Friday as unrelenting sell-offs of blue chips continued amid a grim economic outlook, analysts said. The local currency depreciated against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) plummeted 110.96 points,
or 10.57 percent, to 938.75, dropping below the 1,000-mark for the first time
since June 30, 2005. Volume was moderate at 437.5 million shares worth 5.36
trillion won (US$3.75 billion), with losers outpacing gainers 842 to 41.
"The fallout rate of foreign investment in the local bourse was exacerbated at a
rapid level, as a projected slowdown in the global economy continues to plague
global markets," said Seo Dong-pil, an analyst at Hana Daetoo Securities.
The South Korean economy grew 3.9 percent in the third quarter, the Bank of Korea
(BOK), the nation's central bank, reported in a preliminary tally earlier in the
day. It marked the weakest growth since the second quarter of 2005 when it rose
3.4 percent on-year.
In an accompanying statement, the bank forecasted that Asia's fourth-largest
economy is likely to grow "less than the BOK's previous estimate of 4.6 percent"
this year.
The KOSPI has more than halved from its historic high of 2,085 points in Nov.
2007, largely on selling by offshore investors. Foreign selling amounted to 34.3
trillion won so far this year, according to the Korea Exchange, the bourse
operator.
Steep losses in earlier trading forced the Korea Exchange to suspend program
trading for five minutes, after the main index's futures prices fell more than 5
percent.
Many blue-chips suffered hefty losses -- some by double-digit percentages -- on
massive selling by foreign investors.
Shipbuilders were hit hard, with the top three players each dropping just under
the daily limit of 15 percent during the session. Industry leader Hyundai Heavy
Industries slump 14.76 percent to 115,500 won and second biggest Samsung Heavy
Industries slid 14.72 percent to 13,900 won.
Exporters were also severely dented as their sluggish earnings reports added to
global economic concerns. Market leader Samsung Electronics fell 13.76 percent to
407,500 won after announcing that its third-quarter bottom line fell more than 40
percent from last year. Hyundai Motor slid by 7.89 percent to 46,700 won.
Steel and construction shares also finished in the red, with the biggest steel
producer POSCO falling 12.16 percent to 242,000 and No. 2 builder Hyundai
Engineering and Construction dropping 14.97 percent to 38,350 won.
The local currency closed at 1,422 won to the dollar, down 13.2 won from
Thursday's close, as investor sentiment was hurt by sharp falls in local stocks
and growing concerns over the market's negative impact on the real economy,
dealers said.
The Korean currency has declined almost 34 percent to the greenback so far this
year.
Bond prices, which move inversely to yields, closed mixed. The return on
three-year Treasuries remained unchanged at 4.84 percent and the benchmark yield
on five-year government bonds gained 0.02 percentage point to 4.90 percent.
odissy@yna.co.kr
(END)
