ID :
19999
Wed, 09/17/2008 - 15:22
Auther :
Shortlink :
http://m.oananews.org//node/19999
The shortlink copeid
Seoul shares surge on AIG rescue plan
SEOUL, Sept. 17 (Yonhap) -- South Korean shares ended sharply higher Wednesday as investor sentiment got a boost from a U.S. plan to bail out troubled insurer American International Group Inc., analysts said. The local currency rallied against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) advanced 37.51 points, or 2.7 percent, to 1,425.26. Volume was moderate at 390 million shares worth 5.68 trillion won (US$5.02 billion), with gainers outpacing losers 715 to 132.
"Investors were emboldened by the the Fed's intervention to bail out AIG," said Kwak Jung-bo, an analyst at Hana Daetoo Securities.
The U.S. central bank announced Tuesday it will inject an $85 billion emergency loan to AIG, America's largest insurer by assets, which many feared would collapse due to a lack of liquidity.
Foreign and retail investors switched to net-buying mode after the KOSPI plunged more than 6 percent on Tuesday to an 18-month low, Kwak noted, adding the index now seems to have finally hit its lowest level for now.
Most large-cap shares traded sharply higher with home appliance giant LG Electronics rising 5.82 percent to 94,600 won and LG Display soaring 5 percent to 27,300 won. Market leader Samsung Electronics, however, remained flat at 525,000 won after SanDisk rejected a publicly announced bidding price from Samsung to acquire the U.S. flash memory maker.
Securities issues gained substantially following heavy losses on Tuesday. Mirae Asset & Securities climbed 8.11 percent to 97,300 won, while Samsung Securities advanced 6.52 percent to 68,600 won.
Shipyards and shipping lines also benefited from restored investor confidence. Hyundai Heavy Industries soared 10.38 percent to 250,000 won and Hanjin Shipping added 7.96 percent to end at 26,450 won.
The local currency closed at 1,129.9 won to the U.S. dollar, up 30.1 won from Tuesday's 49-month-low finish, as offshore investors bought up the won to buy stocks in the local bourse, comforted by the AIG bailout plan. On Tuesday, the won plunged to its lowest level against the greenback since 2004.
The benchmark Korea Composite Stock Price Index (KOSPI) advanced 37.51 points, or 2.7 percent, to 1,425.26. Volume was moderate at 390 million shares worth 5.68 trillion won (US$5.02 billion), with gainers outpacing losers 715 to 132.
"Investors were emboldened by the the Fed's intervention to bail out AIG," said Kwak Jung-bo, an analyst at Hana Daetoo Securities.
The U.S. central bank announced Tuesday it will inject an $85 billion emergency loan to AIG, America's largest insurer by assets, which many feared would collapse due to a lack of liquidity.
Foreign and retail investors switched to net-buying mode after the KOSPI plunged more than 6 percent on Tuesday to an 18-month low, Kwak noted, adding the index now seems to have finally hit its lowest level for now.
Most large-cap shares traded sharply higher with home appliance giant LG Electronics rising 5.82 percent to 94,600 won and LG Display soaring 5 percent to 27,300 won. Market leader Samsung Electronics, however, remained flat at 525,000 won after SanDisk rejected a publicly announced bidding price from Samsung to acquire the U.S. flash memory maker.
Securities issues gained substantially following heavy losses on Tuesday. Mirae Asset & Securities climbed 8.11 percent to 97,300 won, while Samsung Securities advanced 6.52 percent to 68,600 won.
Shipyards and shipping lines also benefited from restored investor confidence. Hyundai Heavy Industries soared 10.38 percent to 250,000 won and Hanjin Shipping added 7.96 percent to end at 26,450 won.
The local currency closed at 1,129.9 won to the U.S. dollar, up 30.1 won from Tuesday's 49-month-low finish, as offshore investors bought up the won to buy stocks in the local bourse, comforted by the AIG bailout plan. On Tuesday, the won plunged to its lowest level against the greenback since 2004.
