ID :
99922
Thu, 01/14/2010 - 07:54
Auther :
Shortlink :
https://www.oananews.org//node/99922
The shortlink copeid
Seoul stocks end down 1.6 pct on China's monetary policy
By Lee Youkyung
SEOUL, Jan. 13 (Yonhap) -- South Korean shares finished 1.6 percent lower Wednesday as a faster-than-expected decision by China to cool bank lending triggered foreign and institutional sell-offs, analysts said. The local currency fell against the U.S. dollar.
The Korea Composite Stock Price Index (KOSPI) sank 27.23 points to 1,671.41.
Volume was moderate at 356 million shares worth 5.16 trillion won (US$4.58
billion) with losers outnumbering gainers 612 to 189.
"Investors anticipated that China would tighten its monetary policy at some
point, but it came faster than they had expected," said Hwang Keum-dan, an
analyst at Samsung Securities. "Its further impact on the Seoul bourse will hinge
on the pace and the extent of additional steps that China takes."
On Tuesday, the People's Bank of China mandated local banks to set aside a higher
portion of their deposits at the central bank in a bid to stem inflation and to
tighten credit.
Steel makers and shipping lines finished sharply lower on expectations that
China's move to curb lending could reduce new orders from the largest export
partner of South Korea.
Top steel maker POSCO dropped 4.49 percent to 596,000 won and the biggest bulk
shipping carrier STX Pan Ocean plunged 6.39 percent to 12,450 won.
Doosan Infracore, the leading construction equipment maker that draws about a
quarter of its sales from China, fell 2.06 percent to 19,000 won.
Shipbuilders, which recouped much of its losses in recent sessions on fledgling
recovery hopes, were also hit hard. The world's top shipbuilder Hyundai Heavy
Industries tumbled 5.64 percent to 192,500 won.
The local currency closed at 1,125.50 won to the greenback, down 1.80 won from
Tuesday's close, as offshore investors cut holdings of local shares, dealers
said.
ylee@yna.co.kr
(END)
SEOUL, Jan. 13 (Yonhap) -- South Korean shares finished 1.6 percent lower Wednesday as a faster-than-expected decision by China to cool bank lending triggered foreign and institutional sell-offs, analysts said. The local currency fell against the U.S. dollar.
The Korea Composite Stock Price Index (KOSPI) sank 27.23 points to 1,671.41.
Volume was moderate at 356 million shares worth 5.16 trillion won (US$4.58
billion) with losers outnumbering gainers 612 to 189.
"Investors anticipated that China would tighten its monetary policy at some
point, but it came faster than they had expected," said Hwang Keum-dan, an
analyst at Samsung Securities. "Its further impact on the Seoul bourse will hinge
on the pace and the extent of additional steps that China takes."
On Tuesday, the People's Bank of China mandated local banks to set aside a higher
portion of their deposits at the central bank in a bid to stem inflation and to
tighten credit.
Steel makers and shipping lines finished sharply lower on expectations that
China's move to curb lending could reduce new orders from the largest export
partner of South Korea.
Top steel maker POSCO dropped 4.49 percent to 596,000 won and the biggest bulk
shipping carrier STX Pan Ocean plunged 6.39 percent to 12,450 won.
Doosan Infracore, the leading construction equipment maker that draws about a
quarter of its sales from China, fell 2.06 percent to 19,000 won.
Shipbuilders, which recouped much of its losses in recent sessions on fledgling
recovery hopes, were also hit hard. The world's top shipbuilder Hyundai Heavy
Industries tumbled 5.64 percent to 192,500 won.
The local currency closed at 1,125.50 won to the greenback, down 1.80 won from
Tuesday's close, as offshore investors cut holdings of local shares, dealers
said.
ylee@yna.co.kr
(END)
