Most Popular
-
1
Opposition-led Assembly unilaterally passes bill to probe Marine's death
-
2
Inflation eases in April, continues bumpy ride
-
3
Golden chance to liquidate babies’ gold rings?
-
4
Seoul to more than double military drones by 2026 to counter NK threats
-
5
Russia sent more than 165,000 barrels of refined petroleum to N. Korea in March: White House
-
6
Seoul alerts overseas missions to NK terror threats
-
7
Over 60% of S. Koreans support W100m childbirth incentive: survey
-
8
‘Inside Out 2’ adds four new emotions, explores teenage life
-
9
Questions raised over fair promotion of RM, NewJeans
-
10
Key suspects grilled over alleged abuse of power in Marine death inquiry
Seoul shares dip 1.24 pct on Bernanke remarks, weak Chinese data
By 윤민식Published : May 23, 2013 - 15:41
South Korean stocks plunged 1.24 percent Thursday as hawkish remarks by the U.S. Federal Reserve Chairman Ben Bernanke and weaker-than-expected data from China sapped investor sentiment here, analysts said. The local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) moved down 24.64 points to finish at 1,969.19. Trading volume was low at 337.4 million shares worth 4.54 trillion won ($4.05 billion) with losers far outstripping gainers 599 to 235.
"Investors sat on the sidelines due to Bernanke's remarks, which implied the Federal Reserve may reduce its quantitative easing this year," said Kang Hyun-gie, a researcher at I'M Investment & Securities Co.
"Although an actual policy shift is estimated to take into effect after the third quarter this year, investors' sentiment was dented as the news came amid weak momentum in the market," Kang said.
Bernanke said Wednesday that the Federal Reserve may reduce the purchase of state bonds when the labor market conditions improve.
The Federal Reserve's quantitative easing has been cited as one of the key growth engines on Wall Street, market watchers said.
"The lower-than-expected manufacturing index in China also weighed down on Seoul shares," Kang added. China is the biggest trading partner of the Asia's fourth-largest economy.
British bank HSBC said Thursday that China's purchasing managers index (PMI) came at 49.6 percent in May, a tad lower than the market estimate of 50.4 percent.
The PMI is an index that measures the health of a country's manufacturing sector. A reading of 50 or above represents an expansion of the sector from the previous month while a reading of below 50 represents a contraction.
Foreign investors became net sellers of local shares with a net 9.8 billion won, and institutions also offloaded a net 193 billion won. Individuals, however, purchased more shares than they sold at a net 205.3 billion won.
Tech shares closed bearish, with Samsung Electronics falling 1.66 percent to 1,484,000 won, and its smaller rival LG Electronics moving down 3.6 percent to 80,400 won. Flat panel maker LG Display closed flat at 29,500 won.
Logistics firms lost ground with Hyundai Merchant Marine falling 3.21 percent to 10,550 won and Hyundai Glovis losing 1.33 percent to 186,000 won. Top air carrier Korean Air shed 2.84 percent to 35,950 won.
Builders also closed lower, with industry leader Hyundai Engineering & Construction losing 3.47 percent to 61,200 won and Daewoo Engineering & Construction falling 1.01 percent to 7,850 won. Top steelmaker POSCO shed 0.31 percent to 325,000 won.
In contrast, Hyundai Motor rose 0.25 percent to 202,500 won on reports its workers will resume working weekend shifts following an agreement being reached between the company and the labor union over wages. Its smaller affiliate Kia Motors added 0.35 percent to 57,300 won.
Mobile carriers also gathered ground, with No. 1 player SK Telecom rising 3.02 percent to 221,500 won and KT adding 0.88 percent to 40,250 won. LG Uplus, the smallest player, advanced 5.13 percent to 12,300 won.
The local currency ended at 1,128.70 won against the greenback, down 14.70 won from Wednesday's close on the market outlook that the U.S. Federal Reserve may reduce its quantitative easing, dealers said.
Bond prices, which move inversely to yields, flat. The yield on three-year Treasuries remained unchanged at 2.61 percent and the return on the benchmark five-year government bonds also stood at 2.7 percent. (Yonhap News)
The benchmark Korea Composite Stock Price Index (KOSPI) moved down 24.64 points to finish at 1,969.19. Trading volume was low at 337.4 million shares worth 4.54 trillion won ($4.05 billion) with losers far outstripping gainers 599 to 235.
"Investors sat on the sidelines due to Bernanke's remarks, which implied the Federal Reserve may reduce its quantitative easing this year," said Kang Hyun-gie, a researcher at I'M Investment & Securities Co.
"Although an actual policy shift is estimated to take into effect after the third quarter this year, investors' sentiment was dented as the news came amid weak momentum in the market," Kang said.
Bernanke said Wednesday that the Federal Reserve may reduce the purchase of state bonds when the labor market conditions improve.
The Federal Reserve's quantitative easing has been cited as one of the key growth engines on Wall Street, market watchers said.
"The lower-than-expected manufacturing index in China also weighed down on Seoul shares," Kang added. China is the biggest trading partner of the Asia's fourth-largest economy.
British bank HSBC said Thursday that China's purchasing managers index (PMI) came at 49.6 percent in May, a tad lower than the market estimate of 50.4 percent.
The PMI is an index that measures the health of a country's manufacturing sector. A reading of 50 or above represents an expansion of the sector from the previous month while a reading of below 50 represents a contraction.
Foreign investors became net sellers of local shares with a net 9.8 billion won, and institutions also offloaded a net 193 billion won. Individuals, however, purchased more shares than they sold at a net 205.3 billion won.
Tech shares closed bearish, with Samsung Electronics falling 1.66 percent to 1,484,000 won, and its smaller rival LG Electronics moving down 3.6 percent to 80,400 won. Flat panel maker LG Display closed flat at 29,500 won.
Logistics firms lost ground with Hyundai Merchant Marine falling 3.21 percent to 10,550 won and Hyundai Glovis losing 1.33 percent to 186,000 won. Top air carrier Korean Air shed 2.84 percent to 35,950 won.
Builders also closed lower, with industry leader Hyundai Engineering & Construction losing 3.47 percent to 61,200 won and Daewoo Engineering & Construction falling 1.01 percent to 7,850 won. Top steelmaker POSCO shed 0.31 percent to 325,000 won.
In contrast, Hyundai Motor rose 0.25 percent to 202,500 won on reports its workers will resume working weekend shifts following an agreement being reached between the company and the labor union over wages. Its smaller affiliate Kia Motors added 0.35 percent to 57,300 won.
Mobile carriers also gathered ground, with No. 1 player SK Telecom rising 3.02 percent to 221,500 won and KT adding 0.88 percent to 40,250 won. LG Uplus, the smallest player, advanced 5.13 percent to 12,300 won.
The local currency ended at 1,128.70 won against the greenback, down 14.70 won from Wednesday's close on the market outlook that the U.S. Federal Reserve may reduce its quantitative easing, dealers said.
Bond prices, which move inversely to yields, flat. The yield on three-year Treasuries remained unchanged at 2.61 percent and the return on the benchmark five-year government bonds also stood at 2.7 percent. (Yonhap News)
