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Views Article – Sharenet Wealth

Asia, Forex

S.Korea stocks extend losses on lingering trade worries

* KOSPI index drops, foreigners net sellers

* Korean won little changed vs U.S. dollar

* South Korea benchmark bond yield steady

* For the midday report, please click

SEOUL, Aug 7 (Reuters) – Round-up of South Korean financial markets:

** South Korean shares fell for a sixth straight session on Wednesday, as worries over U.S.-China trade war persisted, but the losses were capped by China’s move to stabilise the yuan. The Korean won barely moved and the benchmark bond yield was unchanged.

** Sentiment has recovered slightly after sharp falls early this week, but it’s hard to expect a rebound for a while, said Na Jeong-hwan, an analyst at DS Investment & Securities. Unless Washington gives favourable signs about its trade negotiation with Beijing, the market would rangebound, he added.

** The Seoul stock market’s main KOSPI ended down 7.80 points or 0.41% at 1,909.70.

** South Korea’s policymakers said they stood ready to take steps to curb any herd behaviour in the market and would consider cutting interest rates again if needed.

** Signs that China is stepping in to steady the yuan after its recent sharp fall also helped ease investors’ fears of a possible global currency war, though the yuan slipped further in morning trade, keeping markets guessing.

** Foreigners were net sellers of 97.7 billion won ($80.44 million) worth of shares on the main board.

** The won was quoted at 1,214.9 per dollar on the onshore settlement platform, 0.03% higher than its previous close at 1,215.3.

** In offshore trading, the won was quoted at 1,214.6 per U.S. dollar, down 0.2% from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,213.7 per dollar.

** MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.08%, after U.S. stocks climbed. Japanese stocks fell 0.33%.

** The KOSPI has fallen 6.43% so far this year, and lost 9.6% in the previous 30 trading sessions.

** The current price-to-earnings ratio is 12.10, the dividend yield is 1.28% and the market capitalisation is 1,242.04 trillion won.

** The trading volume during the session in the KOSPI index was 752.71 million shares and, of the total traded issues of 891, the number of advancing shares was 530.

** The won has lost 8.2% against the U.S dollar so far this year.

** In money and debt markets, September futures on three-year treasury bonds rose 0.03 point to 111.33, while the 3-month Certificate of Deposit rate was quoted at 1.49%.

** The most liquid 3-year Korean treasury bond yield fell by 0.7 basis point to 1.156%, while the benchmark 10-year yield was flat at 1.256%.

($1 = 1,214.5300 won) (Reporting by Hayoung Choi; Editing by Shounak Dasgupta)


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