ID :
59652
Fri, 05/08/2009 - 16:27
Auther :
Shortlink :
https://www.oananews.org//node/59652
The shortlink copeid
Seoul shares end 0.79 pct higher on U.S. bank optimism
(ATTN: ADDS bond yields at bottom)
SEOUL, May 8 (Yonhap) -- South Korean stocks closed 0.79 percent higher Friday as
stress test results on U.S. banks dispelled uncertainty surrounding the health of
the banking system, analysts said. The local currency hit a 7-month high against
the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) advanced 11.05 points to
1,412.13. Volume was heavy at 705.8 million shares worth 7.29 trillion won
(US$5.84 billion), with gainers outpacing losers 468 to 338.
"The stress test results on major U.S. banks widely coincided with market
expectations. But the KOSPI traded in a narrow range during the session on
profit-taking," said Bae Sung-young, an analyst at Hyundai Securities Co.
Bae said the market may continue its bull run next week, but its upward momentum
is likely to moderate, given recent short-term sharp gains.
Stress test results on the 19 largest U.S. banks revealed that 10 lenders
including Bank of America and Citigroup Inc. need to raise their capital buffers
by a combined US$74.6 billion. The results, which came after the U.S. market
closed, widely met investors' expectations.
Financial shares gained ground. Korea Exchange Bank, controlled by U.S. buyout
fund Lone Star Funds, climbed 6.39 percent to 8,990 won after state-run Korea
Development Bank showed its interest in buying the lender in order to gain retail
banking business prior to a planned privatization.
No. 3 builder Hyundai Engineering & Construction rose 6.31 percent to 69,100 won
after its creditor unloaded an 11.1 percent stake in the construction firm for
780 billion won in block trade.
The gains in the local currency dented shares of exporters on concerns over their
weakening price competitiveness in overseas markets. Chip giant Hynix
Semiconductor shed 1.07 percent to 13,900 won and top automaker Hyundai Motor
declined 1.65 percent to 65,400 won.
The local currency ended at 1,247 won against the U.S. dollar, up 15.3 won from
Thursday's close, as foreign investors increased their holdings of Seoul stocks,
dealers said.
Bond prices, which move inversely to yields, closed mixed. The return on
three-year Treasuries shed 0.01 percentage point to 3.9 percent while the
benchmark yield on five-year government bonds added 0.01 point to 4.58 percent.
sooyeon@yna.co.kr
(END)
SEOUL, May 8 (Yonhap) -- South Korean stocks closed 0.79 percent higher Friday as
stress test results on U.S. banks dispelled uncertainty surrounding the health of
the banking system, analysts said. The local currency hit a 7-month high against
the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) advanced 11.05 points to
1,412.13. Volume was heavy at 705.8 million shares worth 7.29 trillion won
(US$5.84 billion), with gainers outpacing losers 468 to 338.
"The stress test results on major U.S. banks widely coincided with market
expectations. But the KOSPI traded in a narrow range during the session on
profit-taking," said Bae Sung-young, an analyst at Hyundai Securities Co.
Bae said the market may continue its bull run next week, but its upward momentum
is likely to moderate, given recent short-term sharp gains.
Stress test results on the 19 largest U.S. banks revealed that 10 lenders
including Bank of America and Citigroup Inc. need to raise their capital buffers
by a combined US$74.6 billion. The results, which came after the U.S. market
closed, widely met investors' expectations.
Financial shares gained ground. Korea Exchange Bank, controlled by U.S. buyout
fund Lone Star Funds, climbed 6.39 percent to 8,990 won after state-run Korea
Development Bank showed its interest in buying the lender in order to gain retail
banking business prior to a planned privatization.
No. 3 builder Hyundai Engineering & Construction rose 6.31 percent to 69,100 won
after its creditor unloaded an 11.1 percent stake in the construction firm for
780 billion won in block trade.
The gains in the local currency dented shares of exporters on concerns over their
weakening price competitiveness in overseas markets. Chip giant Hynix
Semiconductor shed 1.07 percent to 13,900 won and top automaker Hyundai Motor
declined 1.65 percent to 65,400 won.
The local currency ended at 1,247 won against the U.S. dollar, up 15.3 won from
Thursday's close, as foreign investors increased their holdings of Seoul stocks,
dealers said.
Bond prices, which move inversely to yields, closed mixed. The return on
three-year Treasuries shed 0.01 percentage point to 3.9 percent while the
benchmark yield on five-year government bonds added 0.01 point to 4.58 percent.
sooyeon@yna.co.kr
(END)
