Seoul shares trade lower despite central bank's rate cut

SEOUL, Oct. 27 (Yonhap) -- South Korean stocks traded lower late Monday morning as investor jitters remained high despite the central bank's emergency move to slash its key interest rate to shore up the slowing economy, analysts said.

The benchmark Korea Composite Stock Price Index (KOSPI) fell 5.4 points, or 0.58
percent, to 933.35 as of 11:20 a.m.
"The rate cut might have a short-term impact on boosting the local economy but
investors seemed to view it as insufficient to calm the overall market jitters,"
said Choi Soon-ho, an analyst at Eugene Investment & Securities.
The Bank of Korea earlier announced that it lowered its key interest rates by
0.75 percentage point to 4.25 percent in the latest move to jump-start the
slowing economy.
The cut came after the nation's gross domestic product grew 0.6 percent
on-quarter in the third quarter, the slowest in four years.
The emergency rate reduction boosted recently battered stocks such as builders,
tech firms and shipbuilders. Most of the gains, however, were pared due to
profit-taking.
The local currency lost ground as the rate cut is feared to result in more
liquidity and put downward pressure on its value, dealers said. The won was
trading at 1,438.5 won to the U.S. dollar as of 11:20 a.m., down 14.5 won from
Friday's close.
kokobj@yna.co.kr
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