ID :
27572
Thu, 10/30/2008 - 20:10
Auther :
Shortlink :
https://www.oananews.org//node/27572
The shortlink copeid
Seoul shares up 10 pct on swap deal, U.S. rate cut
(ATTN: CORRECTS typo in para 5)
SEOUL, Oct. 30 (Yonhap) -- South Korean stocks surged more than 10 percent late Thursday morning as investors took heart from a currency swap deal with the U.S. and an American rate cut, analysts said.
The benchmark Korea Composite Stock Price Index (KOSPI) climbed 102.76 points, or
10.61 percent, to 1,071.73 as of 11:20 a.m.
"The news of the currency swap deal has subdued the currency concern which has
forced investors to flee the local market," said Kwak Jung-bo, an analyst at Hana
Daetoo Securities, adding that foreign perspectives on the Seoul market will
significantly improve due to the measure.
The U.S. Federal Reserve on Wednesday announced a currency swap deal with the
central bank of Korea and three others counterparts in emerging economies,
promising to supply South Korea with up to US$30 billion in an emergency.
The Fed also slashed its benchmark interest rate by half a percentage point to 1
percent in a bid to help domestic companies weather a credit crisis by increasing
liquidity.
Wall Street shares, however, finished mixed on Wednesday following a report
indicating weakening corporate profits. Dow Jones closed down 74.16 or 0.82
percent at 8,990.96 with tech-heavy Nasdaq advanced 7.74 or 0.47 percent to
1,657.21.
Large-cap shares sharply increased across the local board, some with double-digit
percentage points. Steel and shipbuilders, having recently been beaten-down, led
the gains amid massive buying of institutions.
The local currency was trading at 1,301 won to the U.S. dollar as of 11:20 a.m.,
surging 126 won from Wednesday's close, as investors bought won to return to the
market following the currency swap arrangement.
odissy@yna.co.kr
(END)
SEOUL, Oct. 30 (Yonhap) -- South Korean stocks surged more than 10 percent late Thursday morning as investors took heart from a currency swap deal with the U.S. and an American rate cut, analysts said.
The benchmark Korea Composite Stock Price Index (KOSPI) climbed 102.76 points, or
10.61 percent, to 1,071.73 as of 11:20 a.m.
"The news of the currency swap deal has subdued the currency concern which has
forced investors to flee the local market," said Kwak Jung-bo, an analyst at Hana
Daetoo Securities, adding that foreign perspectives on the Seoul market will
significantly improve due to the measure.
The U.S. Federal Reserve on Wednesday announced a currency swap deal with the
central bank of Korea and three others counterparts in emerging economies,
promising to supply South Korea with up to US$30 billion in an emergency.
The Fed also slashed its benchmark interest rate by half a percentage point to 1
percent in a bid to help domestic companies weather a credit crisis by increasing
liquidity.
Wall Street shares, however, finished mixed on Wednesday following a report
indicating weakening corporate profits. Dow Jones closed down 74.16 or 0.82
percent at 8,990.96 with tech-heavy Nasdaq advanced 7.74 or 0.47 percent to
1,657.21.
Large-cap shares sharply increased across the local board, some with double-digit
percentage points. Steel and shipbuilders, having recently been beaten-down, led
the gains amid massive buying of institutions.
The local currency was trading at 1,301 won to the U.S. dollar as of 11:20 a.m.,
surging 126 won from Wednesday's close, as investors bought won to return to the
market following the currency swap arrangement.
odissy@yna.co.kr
(END)
