ID :
26857
Mon, 10/27/2008 - 14:52
Auther :
Shortlink :
https://www.oananews.org//node/26857
The shortlink copeid
Seoul shares rebound in volatile trading
(ATTN: ADDS bond yields at bottom)
SEOUL, Oct. 27 (Yonhap) -- South Korean stocks closed slightly higher Monday after volatile trading as investors picked up recently battered shares, betting that market conditions might improve due to a larger-than-expected rate cut by the central bank and other stabilization measures, analysts said. The local currency depreciated against the greenback.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 7.7 points, or 0.82
percent, to 946.45, ending a four-day losing streak. Volume was heavy at 531.3
million shares worth 5.74 trillion won (US$3.98 billion), with losers outpacing
gainers 713 to 163.
"Investors seemed to take some comfort with the central bank's market
stabilization measures including a sharp rate cut," said Park Seok-hyun, an
analyst at Eugene Investment & Securities. "Institutions picked up oversold
shares, helping sustain the overall index."
The Bank of Korea earlier announced that it has lowered its key interest rate by
0.75 percentage point to 4.25 percent in the latest move to jump-start the
slowing economy. It also plans to buy up to 10 trillion won worth of bonds issued
by local lenders.
The rate cut, the largest ever, comes after gross domestic product grew 0.6
percent in the third quarter from three months earlier, marking the slowest
growth in four years, due to sluggish domestic demand and lagging export growth.
The market underwent highly volatile trading throughout the day. Steep losses in
earlier trading forced the Korea Exchange to suspend program trading in early
trading for five minutes. The index once breached the 900-point level.
Tech and steel shares drove the last-minute rebound. Industry leader Samsung
Electronics surged 7.48 percent to 438,000 won, while second-ranked LG
Electronics jumped 6.52 percent. Top steelmaker POSCO closed up 8.68 percent to
263,000 won.
Banking issues were among the sharp gainers. Shinhan Financial Group rose 5.42
percent to 36,000 won and Woori Finance Holdings advanced 11.6 percent to 7,600
won. Auto companies also added to the upward move, with leading carmaker Hyundai
Motor closing up 10.49 percent at 51,600 won.
Shipbuilders and brokerage companies, however, weighed on the market. No. 2
shipyard Samsung Heavy Industries plunged 14.75 percent to 11,850 won and Samsung
Securities lost 5.11 percent to 52,000 won.
The local currency lost ground, as the rate cut usually results in more liquidity
and puts downward pressure on its value, dealers said. The won closed at 1,442.5
won to the U.S. dollar, down 18.5 won from Friday's close.
Bond prices, which move inversely to yields, surged. The return on three-year
Treasuries plunged 0.32 percentage point to 4.52 percent and the benchmark yield
on five-year government bonds fell 0.28 percentage point to 4.62 percent.
kokobj@yna.co.kr
(END)
SEOUL, Oct. 27 (Yonhap) -- South Korean stocks closed slightly higher Monday after volatile trading as investors picked up recently battered shares, betting that market conditions might improve due to a larger-than-expected rate cut by the central bank and other stabilization measures, analysts said. The local currency depreciated against the greenback.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 7.7 points, or 0.82
percent, to 946.45, ending a four-day losing streak. Volume was heavy at 531.3
million shares worth 5.74 trillion won (US$3.98 billion), with losers outpacing
gainers 713 to 163.
"Investors seemed to take some comfort with the central bank's market
stabilization measures including a sharp rate cut," said Park Seok-hyun, an
analyst at Eugene Investment & Securities. "Institutions picked up oversold
shares, helping sustain the overall index."
The Bank of Korea earlier announced that it has lowered its key interest rate by
0.75 percentage point to 4.25 percent in the latest move to jump-start the
slowing economy. It also plans to buy up to 10 trillion won worth of bonds issued
by local lenders.
The rate cut, the largest ever, comes after gross domestic product grew 0.6
percent in the third quarter from three months earlier, marking the slowest
growth in four years, due to sluggish domestic demand and lagging export growth.
The market underwent highly volatile trading throughout the day. Steep losses in
earlier trading forced the Korea Exchange to suspend program trading in early
trading for five minutes. The index once breached the 900-point level.
Tech and steel shares drove the last-minute rebound. Industry leader Samsung
Electronics surged 7.48 percent to 438,000 won, while second-ranked LG
Electronics jumped 6.52 percent. Top steelmaker POSCO closed up 8.68 percent to
263,000 won.
Banking issues were among the sharp gainers. Shinhan Financial Group rose 5.42
percent to 36,000 won and Woori Finance Holdings advanced 11.6 percent to 7,600
won. Auto companies also added to the upward move, with leading carmaker Hyundai
Motor closing up 10.49 percent at 51,600 won.
Shipbuilders and brokerage companies, however, weighed on the market. No. 2
shipyard Samsung Heavy Industries plunged 14.75 percent to 11,850 won and Samsung
Securities lost 5.11 percent to 52,000 won.
The local currency lost ground, as the rate cut usually results in more liquidity
and puts downward pressure on its value, dealers said. The won closed at 1,442.5
won to the U.S. dollar, down 18.5 won from Friday's close.
Bond prices, which move inversely to yields, surged. The return on three-year
Treasuries plunged 0.32 percentage point to 4.52 percent and the benchmark yield
on five-year government bonds fell 0.28 percentage point to 4.62 percent.
kokobj@yna.co.kr
(END)
