ID :
39762
Fri, 01/09/2009 - 19:48
Auther :
Shortlink :
http://m.oananews.org//node/39762
The shortlink copeid
Seoul shares end 2.05 pct lower despite rate cut
(ATTN: ADDS bond yields at bottom)
SEOUL, Jan. 9 (Yonhap) -- South Korean stocks closed 2.05 percent lower Friday as
an interest rate cut failed to sooth investor concerns over an economic slowdown,
analysts said. The local currency dropped against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) shed 24.74 points to
1,180.96. Volume was heavy at 438.1 million shares worth 5.25 trillion won
(US$3.92 billion), with losers outpacing gainers 447 to 381.
"Despite the central bank's rate cut, shares tumbled as investors remain jittery
over the economy's recession," said Yun Lee an analyst at Woori Securities.
Earlier in the day, the Bank of Korea slashed the benchmark seven-day repo rate
to a record low of 2.5 percent, the fifth cut since October, to prop up the
slowing economy.
Bank shares were hit hardest after Ssangyong Motor's request for court protection
set off a concern that a corporate restructuring wave is in the offing. Woori
Finance Holdings, the parent company of Woori Bank, tumbled 12.2 percent to 7,700
won and Shinhan Financial Group which controls Shinhan Bank slid 4.4 percent to
30,400 won.
Trading of Ssangyong Motor shares, the local unit of China's Shanghai Automotive
Industry Corp, was halted in the early session as the money-losing auto-maker
filed for court receivership after the parent company refused to bail out the
company.
Top steel maker POSCO shed 4.13 percent to 395,000 won. Biggest builder Daewoo
Engineering & Construction also dropped 7.23 percent to end at 10,900 won.
Market leader Samsung Electronics sank 2.95 percent to 493,000 won and its
smaller rival LG Electronics shed 3.03 percent to end at 80,000 won.
The local currency finished at 1,343 won to the dollar, down 10 won from
Thursday's close, as foreign investors unloaded the won after selling off local
shares.
Bond prices, which move inversely to yields, closed lower. The return on
three-year Treasuries rose 0.22 percentage point to 3.48 percent and the
benchmark yield on five-year government bonds climbed 0.27 percentage point to
3.99 percent.
pbr@yna.co.kr
(END)
SEOUL, Jan. 9 (Yonhap) -- South Korean stocks closed 2.05 percent lower Friday as
an interest rate cut failed to sooth investor concerns over an economic slowdown,
analysts said. The local currency dropped against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) shed 24.74 points to
1,180.96. Volume was heavy at 438.1 million shares worth 5.25 trillion won
(US$3.92 billion), with losers outpacing gainers 447 to 381.
"Despite the central bank's rate cut, shares tumbled as investors remain jittery
over the economy's recession," said Yun Lee an analyst at Woori Securities.
Earlier in the day, the Bank of Korea slashed the benchmark seven-day repo rate
to a record low of 2.5 percent, the fifth cut since October, to prop up the
slowing economy.
Bank shares were hit hardest after Ssangyong Motor's request for court protection
set off a concern that a corporate restructuring wave is in the offing. Woori
Finance Holdings, the parent company of Woori Bank, tumbled 12.2 percent to 7,700
won and Shinhan Financial Group which controls Shinhan Bank slid 4.4 percent to
30,400 won.
Trading of Ssangyong Motor shares, the local unit of China's Shanghai Automotive
Industry Corp, was halted in the early session as the money-losing auto-maker
filed for court receivership after the parent company refused to bail out the
company.
Top steel maker POSCO shed 4.13 percent to 395,000 won. Biggest builder Daewoo
Engineering & Construction also dropped 7.23 percent to end at 10,900 won.
Market leader Samsung Electronics sank 2.95 percent to 493,000 won and its
smaller rival LG Electronics shed 3.03 percent to end at 80,000 won.
The local currency finished at 1,343 won to the dollar, down 10 won from
Thursday's close, as foreign investors unloaded the won after selling off local
shares.
Bond prices, which move inversely to yields, closed lower. The return on
three-year Treasuries rose 0.22 percentage point to 3.48 percent and the
benchmark yield on five-year government bonds climbed 0.27 percentage point to
3.99 percent.
pbr@yna.co.kr
(END)
