Seoul stocks trade higher on bank recapitalization plan

SEOUL, Dec. 19 (Yonhap) -- South Korean shares inched up 0.07 percent Friday as a government plan to shore up local lenders soothed investors jitters, analysts said.
The benchmark Korea Composite Stock Price Index (KOSPI) added 0.83 points to
1,176.74 as of 11:20 a.m.
"The government's bank recapitalization plan helped the key index remain in
positive territory despite days of Wall Street losses," said Bae Sung-young, an
analyst at Hyundai Securities.
Seoul pledged Thursday to create 20 trillion won (US$15.5 bln) fund to
recapitalize cash-strapped local lenders. Such a move could increase the size of
loans available to businesses and help to lower interest rates.
U.S. shares tumbled Thursday as dismal corporate outlooks and slumping oil prices
worsened market jitters. The Dow Jones industrial average shed 2.49 percent and
the tech heavy Nasdaq fell 1.71 percent.
The local currency was trading at 1,292.45 won to the U.S. dollar as of 11:20
a.m., down 0.95 won from Thursday's close.
pbr@yna.co.kr
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