ID :
18975
Thu, 09/11/2008 - 19:37
Auther :
Shortlink :
http://m.oananews.org//node/18975
The shortlink copeid
Seoul shares down on futures expiration
SEOUL, Sept. 11 (Yonhap) -- South Korean stocks closed lower Thursday as investors dumped most blue chips on concerns over fluctuations due to the expiration of futures and options, analysts said. The local currency plunged against the greenback after offshore investors continued their selling of stocks here.
The benchmark Korea Composite Stock Price Index (KOSPI) lost 21.74 points, or
1.48 percent, to 1,443.24. Volume was moderate at 357 million shares worth 6.08
trillion won (US$5.46 billion), with losers outpacing gainers 420 to 374.
"The key index, which fell in the morning over precautions ahead of the
central bank's rate meeting, fell further as uncertainty on the
quadruple-witching day triggered selling by institutional and foreign
investors," said Bae Sung-yung, an analyst at Dongbu Securities.
Bae was referring to the expiration on Thursday of stock index futures, stock
index options, stock options and single stock futures. Quadruple witching days
usually result in price swings.
The decision to leave the nation's key borrowing rate unchanged did not largely
affect the market, as most players anticipated a freeze, according to Bae.
Bank of Korea (BOK) Gov. Lee Seong-tae and his six fellow policymakers froze the
benchmark 7-day repurchase agreement rate at a nearly 8-year high of 5.25
percent. The BOK raised the key rate by a quarter percentage point in August to
control spiraling inflation, the first increase in a year.
Lee forecasted inflation would remain high in the second half, fanned by the
won's devaluation and planned hikes in public utility rates, underlining that the
inflation rate is likely to rise above 5.3 percent in the second half.
Finance issues lost the most, with top lender Kookmin Bank slumping 4.14 percent
to 57,900 won and leading non-life insurer Samsung Fire & Marine falling 2.96
percent to 197,000 won.
Telecom and steel stocks also ended in the minus column. Leading mobile carrier
SK Telecom slid 3.13 percent to 201,000 won and smaller rival KTF also tumbled
4.79 percent to 27,850 won. Top steelmaker POSCO fell 1.3 percent to 416,500 won.
Tech exporters also closed lower, reversing gains in earlier trading. Samsung
Electronics slumped 0.92 percent to 537,000 won and LG Electronics also fell 1.53
percent. Hynix Semiconductor, however, rose 1 percent to 20,300 won after Goldman
Sachs forecasted a recovery in in the DRAM market next year.
Top builder Daewoo Engineering & Construction also advanced 2.71 percent to
13,250 won, gaining ground along with other construction shares.
The local currency closed at 1,109.5 won to the dollar, plunging 14 won from
Wednesday's close as offshore investors to pulled money out of local stocks to
purchase the greenback, dealers said.
The benchmark Korea Composite Stock Price Index (KOSPI) lost 21.74 points, or
1.48 percent, to 1,443.24. Volume was moderate at 357 million shares worth 6.08
trillion won (US$5.46 billion), with losers outpacing gainers 420 to 374.
"The key index, which fell in the morning over precautions ahead of the
central bank's rate meeting, fell further as uncertainty on the
quadruple-witching day triggered selling by institutional and foreign
investors," said Bae Sung-yung, an analyst at Dongbu Securities.
Bae was referring to the expiration on Thursday of stock index futures, stock
index options, stock options and single stock futures. Quadruple witching days
usually result in price swings.
The decision to leave the nation's key borrowing rate unchanged did not largely
affect the market, as most players anticipated a freeze, according to Bae.
Bank of Korea (BOK) Gov. Lee Seong-tae and his six fellow policymakers froze the
benchmark 7-day repurchase agreement rate at a nearly 8-year high of 5.25
percent. The BOK raised the key rate by a quarter percentage point in August to
control spiraling inflation, the first increase in a year.
Lee forecasted inflation would remain high in the second half, fanned by the
won's devaluation and planned hikes in public utility rates, underlining that the
inflation rate is likely to rise above 5.3 percent in the second half.
Finance issues lost the most, with top lender Kookmin Bank slumping 4.14 percent
to 57,900 won and leading non-life insurer Samsung Fire & Marine falling 2.96
percent to 197,000 won.
Telecom and steel stocks also ended in the minus column. Leading mobile carrier
SK Telecom slid 3.13 percent to 201,000 won and smaller rival KTF also tumbled
4.79 percent to 27,850 won. Top steelmaker POSCO fell 1.3 percent to 416,500 won.
Tech exporters also closed lower, reversing gains in earlier trading. Samsung
Electronics slumped 0.92 percent to 537,000 won and LG Electronics also fell 1.53
percent. Hynix Semiconductor, however, rose 1 percent to 20,300 won after Goldman
Sachs forecasted a recovery in in the DRAM market next year.
Top builder Daewoo Engineering & Construction also advanced 2.71 percent to
13,250 won, gaining ground along with other construction shares.
The local currency closed at 1,109.5 won to the dollar, plunging 14 won from
Wednesday's close as offshore investors to pulled money out of local stocks to
purchase the greenback, dealers said.
