ID :
23343
Thu, 10/09/2008 - 09:59
Auther :
Shortlink :
http://m.oananews.org//node/23343
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Seoul shares crash on growing financial worries
SEOUL, Oct. 8 (Yonhap) -- South Korean stocks plunged about 5.8 percent Wednesday as investors dumped blue chips, spooked by escalating global financial concerns, analysts said.
The local currency plummeted to a 10-year low against the U.S.
dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) plummeted 79.41 points,
or 5.81 percent, to 1,286.69, falling to its lowest level since August 2006.
Volume was heavy at 423.68 million shares worth 5.01 trillion won (US$3.59
billion), with losers outpacing gainers 814 to 56.
"Investor sentiment is severely deteriorated, with continued losses on Wall
Street in the past few sessions causing more concerns about the credibility of
financial markets," said Lim Dong-min, an analyst at Dongbu Securities.
U.S. stocks took a hefty blow again Tuesday amid escalating fears regarding
credit markets and the financial sector. The Dow Jones industrial average
plummeted 5.11 percent and the tech-dominated Nasdaq composite index plunged 5.8
percent.
Australian and Hong Kong financial authorities' recent decision to cut borrowing
rates is raising prospects that the Bank of Korea will make a similar move. This
is increasing investor uncertainty, Lim said, and making it more likely that they
will simply pull out to avoid further losses.
Large caps lost ground across the board, with heavy machinery and steel stocks
losing the most. Doosan Heavy Industries plunged 15 percent to 62,900 won and
POSCO sank 5.94 percent to 364,000 won.
Tech exporters and financials also lost ground. Hynix Semiconductor tumbled 14.93
percent to 15,100 won and flat panel giant LG Display slumped 10.14 percent to
24,800 won. Shinhan Financial Group, the No. 2 financial services company,
plummeted 8.25 percent 35,600 won.
The South Korean won closed at 1,395 won to the dollar, down 66.9 won from
Tuesday's close and its lowest level since September 1998, as offshore investors
snapped up the dollar due to growing concerns over volatility in financial
markets, according to dealers.
odissy@yna.co.kr
(END)
The local currency plummeted to a 10-year low against the U.S.
dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) plummeted 79.41 points,
or 5.81 percent, to 1,286.69, falling to its lowest level since August 2006.
Volume was heavy at 423.68 million shares worth 5.01 trillion won (US$3.59
billion), with losers outpacing gainers 814 to 56.
"Investor sentiment is severely deteriorated, with continued losses on Wall
Street in the past few sessions causing more concerns about the credibility of
financial markets," said Lim Dong-min, an analyst at Dongbu Securities.
U.S. stocks took a hefty blow again Tuesday amid escalating fears regarding
credit markets and the financial sector. The Dow Jones industrial average
plummeted 5.11 percent and the tech-dominated Nasdaq composite index plunged 5.8
percent.
Australian and Hong Kong financial authorities' recent decision to cut borrowing
rates is raising prospects that the Bank of Korea will make a similar move. This
is increasing investor uncertainty, Lim said, and making it more likely that they
will simply pull out to avoid further losses.
Large caps lost ground across the board, with heavy machinery and steel stocks
losing the most. Doosan Heavy Industries plunged 15 percent to 62,900 won and
POSCO sank 5.94 percent to 364,000 won.
Tech exporters and financials also lost ground. Hynix Semiconductor tumbled 14.93
percent to 15,100 won and flat panel giant LG Display slumped 10.14 percent to
24,800 won. Shinhan Financial Group, the No. 2 financial services company,
plummeted 8.25 percent 35,600 won.
The South Korean won closed at 1,395 won to the dollar, down 66.9 won from
Tuesday's close and its lowest level since September 1998, as offshore investors
snapped up the dollar due to growing concerns over volatility in financial
markets, according to dealers.
odissy@yna.co.kr
(END)
