ID :
27329
Wed, 10/29/2008 - 19:10
Auther :
Shortlink :
https://www.oananews.org//node/27329
The shortlink copeid
Seoul shares end sharply lower on IMF bailout rumors
SEOUL, Oct. 29 (Yonhap) -- South Korean stocks fell more than 3 percent Wednesday
on rumors that the International Monetary Fund (IMF) has offered to provide the
country with dollar liquidity, analysts said.
The benchmark Korea Composite Stock Price Index (KOSPI) tumbled 30.19 points, or
3.02 percent, to 968.97 after surging nearly 8 percent in morning trading on
overnight U.S. rallies. Volume was heavy at 754.6 million shares worth 8.2
trillion won (US$5.74 billion), with losers outpacing gainers 526 to 320.
"Unconfirmed market rumors, especially the IMF offer of support, seems to have
caused confusion among investors," said Bae Sung-young, an analyst at Hyundai
Securities.
The Herald Business, a local daily, reported earlier in the day that the IMF had
offered to lend dollars to South Korea without preconditions. The paper said that
the government has not yet responded to the offer for fear the move may affect
investor sentiment.
South Korea has bad memories stemming from an IMF-arranged bailout package it
received in 1997 during the Asia-wide financial crisis.
Choi Jong-ku, head of the finance ministry's international finance bureau,
rebutted the report later in the afternoon, arguing that the country has
sufficient foreign reserves and will likely not need the support in the future as
well.
Finance and construction stocks took a toll, with Woori Finance Holdings tumbling
its daily percentage limit of 15 percent to 7,310 won and leading builder Daewoo
Engineering & Construction falling 7.92 percent to 7,790 won.
Machinery and automakers also finished in the red. Top power generator producer
Doosan Heavy Industries plunged 8.7 percent to 42,000 won and leading automaker
Hyundai Motor slid 5.16 percent to 55,100 won. Hyundai Heavy Industries, the
world's leading shipbuilder, fell 0.72 percent to 137,000 won.
Tech and steel stocks, however, prevented the main index from falling further.
Tech behemoth Samsung Electronics rose 2.48 percent to 475,000 won and No. 1
steelmaker POSCO added 2.51 percent to finish at 306,500 won.
The won closed at 1,427 won to the U.S. dollar, up 40.8 won from Tuesday's close,
as investors dumped the greenback on expectations that a likely U.S. rate cut
would depreciate the dollar against other currencies.
odissy@yna.co.kr
(END)
on rumors that the International Monetary Fund (IMF) has offered to provide the
country with dollar liquidity, analysts said.
The benchmark Korea Composite Stock Price Index (KOSPI) tumbled 30.19 points, or
3.02 percent, to 968.97 after surging nearly 8 percent in morning trading on
overnight U.S. rallies. Volume was heavy at 754.6 million shares worth 8.2
trillion won (US$5.74 billion), with losers outpacing gainers 526 to 320.
"Unconfirmed market rumors, especially the IMF offer of support, seems to have
caused confusion among investors," said Bae Sung-young, an analyst at Hyundai
Securities.
The Herald Business, a local daily, reported earlier in the day that the IMF had
offered to lend dollars to South Korea without preconditions. The paper said that
the government has not yet responded to the offer for fear the move may affect
investor sentiment.
South Korea has bad memories stemming from an IMF-arranged bailout package it
received in 1997 during the Asia-wide financial crisis.
Choi Jong-ku, head of the finance ministry's international finance bureau,
rebutted the report later in the afternoon, arguing that the country has
sufficient foreign reserves and will likely not need the support in the future as
well.
Finance and construction stocks took a toll, with Woori Finance Holdings tumbling
its daily percentage limit of 15 percent to 7,310 won and leading builder Daewoo
Engineering & Construction falling 7.92 percent to 7,790 won.
Machinery and automakers also finished in the red. Top power generator producer
Doosan Heavy Industries plunged 8.7 percent to 42,000 won and leading automaker
Hyundai Motor slid 5.16 percent to 55,100 won. Hyundai Heavy Industries, the
world's leading shipbuilder, fell 0.72 percent to 137,000 won.
Tech and steel stocks, however, prevented the main index from falling further.
Tech behemoth Samsung Electronics rose 2.48 percent to 475,000 won and No. 1
steelmaker POSCO added 2.51 percent to finish at 306,500 won.
The won closed at 1,427 won to the U.S. dollar, up 40.8 won from Tuesday's close,
as investors dumped the greenback on expectations that a likely U.S. rate cut
would depreciate the dollar against other currencies.
odissy@yna.co.kr
(END)
