Seoul shares pare losses on rate cut

SEOUL, Nov. 7 (Yonhap) -- South Korean stocks trimmed losses late Friday morning as investor sentiment was lifted by a rate cut by the central bank aimed at boosting the slumping economy, analysts said.

The benchmark Korea Composite Stock Price Index (KOSPI) lost 14.07 points, or
1.29 percent, to 1,078.15 as of 11:20 a.m. after falling to as low 1,038.72 in
early trading.
"The market started sharply lower on overnight Wall Street plunges but losses
were pared after the central bank's rate-cut decision, with institutions
expanding their purchases," said Choi Soon-ho, an analyst at Eugene Investment &
Securities.
Earlier, the Bank of Korea slashed its key interest rate by 0.25 percentage point
to 4 percent, the lowest level since February 2006. It was the third rate cut in
a month.
Most large-cap issues still remained in negative territory, with banks,
steelmakers and shipbuilders among the decliners.
The pullback came after U.S. stocks tumbled for a second session on Thursday amid
growing recession woes. The Dow Jones industrial average tumbled 4.85 percent and
the tech-heavy Nasdaq lost 4.34 percent.
The won was trading at 1,343.5 won to the U.S. dollar as of 11:20 a.m., down 12.7
won from Thursday's close.
kokobj@yna.co.kr
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