ID :
27597
Fri, 10/31/2008 - 00:00
Auther :
Shortlink :
https://www.oananews.org//node/27597
The shortlink copeid
Seoul shares soar 12 pct on swap deal, U.S. rate cut
SEOUL, Oct. 30 (Yonhap) -- South Korean stocks finished almost 12 percent higher
Thursday on hopes that a currency swap deal with the U.S. and a rate cut by the
Federal Reserve may serve to relieve the market turmoil, analysts said. The local
currency surged against the greenback.
The benchmark Korea Composite Stock Price Index (KOSPI) jumped 115.75 points, or
11.95 percent, to 1,084.72, its largest-ever daily gain. Volume was heavy at
616.5 million shares worth 7.32 trillion won (US$5.85 billion), with gainers
outpacing losers 841 to 53.
"The news of the currency swap deal has relieved the currency concern, which sent
foreign investors fleeing the local market," said Kwak Jung-bo, an analyst at
Hana Daetoo Securities, adding that perceptions of the Seoul market among foreign
investors 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 other emerging economies, promising to supply up
to US$30 billion in emergency liquidity funds.
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.
Large-cap shares enjoyed strong gains, with some soaring at double-digit rates.
Steel and shipbuilders, which have been taking a beating recently, led the gains
amid massive institutional buying. Top steelmaker POSCO gained 14.85 percent to
352,000 won and leading shipyard Hyundai Heavy Industries added 14.96 percent to
end at 157,500 won.
Tech and automakers were bolstered as well. Market heavyweight Samsung
Electronics shored up 13.05 percent to 537,000 won and top automaker Hyundai
Motor soared 14.7 percent to 63,200 won. Finance, telecom and other sectors added
ground as well.
The Korean currency closed at 1,250 won to the greenback, up 177 won from
Wednesday's close and the biggest single-day gain in almost 11 years, as foreign
investors purchased the won to return to the stock market, dealers said.
odissy@yna.co.kr
(END)
Thursday on hopes that a currency swap deal with the U.S. and a rate cut by the
Federal Reserve may serve to relieve the market turmoil, analysts said. The local
currency surged against the greenback.
The benchmark Korea Composite Stock Price Index (KOSPI) jumped 115.75 points, or
11.95 percent, to 1,084.72, its largest-ever daily gain. Volume was heavy at
616.5 million shares worth 7.32 trillion won (US$5.85 billion), with gainers
outpacing losers 841 to 53.
"The news of the currency swap deal has relieved the currency concern, which sent
foreign investors fleeing the local market," said Kwak Jung-bo, an analyst at
Hana Daetoo Securities, adding that perceptions of the Seoul market among foreign
investors 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 other emerging economies, promising to supply up
to US$30 billion in emergency liquidity funds.
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.
Large-cap shares enjoyed strong gains, with some soaring at double-digit rates.
Steel and shipbuilders, which have been taking a beating recently, led the gains
amid massive institutional buying. Top steelmaker POSCO gained 14.85 percent to
352,000 won and leading shipyard Hyundai Heavy Industries added 14.96 percent to
end at 157,500 won.
Tech and automakers were bolstered as well. Market heavyweight Samsung
Electronics shored up 13.05 percent to 537,000 won and top automaker Hyundai
Motor soared 14.7 percent to 63,200 won. Finance, telecom and other sectors added
ground as well.
The Korean currency closed at 1,250 won to the greenback, up 177 won from
Wednesday's close and the biggest single-day gain in almost 11 years, as foreign
investors purchased the won to return to the stock market, dealers said.
odissy@yna.co.kr
(END)
