ID :
19831
Wed, 09/17/2008 - 09:27
Auther :
Shortlink :
http://m.oananews.org//node/19831
The shortlink copeid
S. Korean stocks crash on Lehman collapse
SEOUL, Sept. 16 (Yonhap) -- South Korean stocks nosedived more than 6 percent to an 18-month low Tuesday on panic selling following the demise of Lehman Brothers Holdings, analysts said. The local currency plunged to the lowest level against the U.S. dollar since 2004.
The benchmark Korea Composite Stock Price Index (KOSPI) plummeted 90.17 points,
or 6.1 percent, to 1,387.75. Volume was moderate at 387.2 million shares worth
6.28 trillion won (US$5.4 billion), with losers outpacing gainers 810 to 63.
With share prices making a free fall, the nation's bourse operator temporarily
suspended program selling orders to prevent a further market decline.
"The bankruptcy filing of Lehman Brothers sent shock waves across global
markets, with indexes in developed markets having fallen around 4 percent on
average on Monday," said Lim Dong-min an analyst at Dongbu Securities.
U.S. stocks plummeted Monday after the 158-year-old Lehman Brothers filed for
bankruptcy, burdened by $60 billion in soured real estate holdings. Jitters piled
up on the equally stunning news of Merrill Lynch, which seeking to avoid a
similar fate, changed hands in a $50 billion transaction to become part of Bank
of America. The Dow Jones industrial average plunged 4.42 percent and the
tech-dominated Nasdaq composite index tumbled 3.6 percent.
Earlier in the day, the Financial Services Commission, South Korea's financial
regulator, said it banned the two Lehman units in Seoul from selling their assets
and repaying debts until Dec. 15.
The measure was aimed at "protecting investors at home and preventing
potential chaos in local financial markets," according to the financial
watchdog.
Finance stocks sank deep in the red, with top lender Kookmin Bank tumbling 7.99
percent to 55,300 won and leading brokerage Mirae Asset Securities plummeting
14.69 percent to 90,000 won. Leading non-life insurer Samsung Fire & Marine
shed 2.23 percent to close at 197,000 won.
Tech exporters, construction and shipyard shares were also beaten. Market
heavyweight Samsung Electronics slid 3.31 percent to 525,000 won and panel giant
LG Display tumbled 9.72 percent dragged by its recently-slashed earnings
outlooks.
Top builder Daewoo Engineering & Construction tumbled 10.22 percent to 12,300
won and Hyundai Heavy Industries, the world's largest shipyard, fell 9.58 percent
to 226,500 won.
The local currency closed at a 49-month low of 1,160.0 won to the U.S. dollar,
plunging 50.9 won from Friday's close, as foreign investors rushed to purchase
the dollar after dumping shares in the local bourse, dealers said. South Korea's
financial markets were closed Monday for the Chuseok holiday.
odissy@yna.co.kr
(END)
The benchmark Korea Composite Stock Price Index (KOSPI) plummeted 90.17 points,
or 6.1 percent, to 1,387.75. Volume was moderate at 387.2 million shares worth
6.28 trillion won (US$5.4 billion), with losers outpacing gainers 810 to 63.
With share prices making a free fall, the nation's bourse operator temporarily
suspended program selling orders to prevent a further market decline.
"The bankruptcy filing of Lehman Brothers sent shock waves across global
markets, with indexes in developed markets having fallen around 4 percent on
average on Monday," said Lim Dong-min an analyst at Dongbu Securities.
U.S. stocks plummeted Monday after the 158-year-old Lehman Brothers filed for
bankruptcy, burdened by $60 billion in soured real estate holdings. Jitters piled
up on the equally stunning news of Merrill Lynch, which seeking to avoid a
similar fate, changed hands in a $50 billion transaction to become part of Bank
of America. The Dow Jones industrial average plunged 4.42 percent and the
tech-dominated Nasdaq composite index tumbled 3.6 percent.
Earlier in the day, the Financial Services Commission, South Korea's financial
regulator, said it banned the two Lehman units in Seoul from selling their assets
and repaying debts until Dec. 15.
The measure was aimed at "protecting investors at home and preventing
potential chaos in local financial markets," according to the financial
watchdog.
Finance stocks sank deep in the red, with top lender Kookmin Bank tumbling 7.99
percent to 55,300 won and leading brokerage Mirae Asset Securities plummeting
14.69 percent to 90,000 won. Leading non-life insurer Samsung Fire & Marine
shed 2.23 percent to close at 197,000 won.
Tech exporters, construction and shipyard shares were also beaten. Market
heavyweight Samsung Electronics slid 3.31 percent to 525,000 won and panel giant
LG Display tumbled 9.72 percent dragged by its recently-slashed earnings
outlooks.
Top builder Daewoo Engineering & Construction tumbled 10.22 percent to 12,300
won and Hyundai Heavy Industries, the world's largest shipyard, fell 9.58 percent
to 226,500 won.
The local currency closed at a 49-month low of 1,160.0 won to the U.S. dollar,
plunging 50.9 won from Friday's close, as foreign investors rushed to purchase
the dollar after dumping shares in the local bourse, dealers said. South Korea's
financial markets were closed Monday for the Chuseok holiday.
odissy@yna.co.kr
(END)