Seoul shares rebound on eased eurozone banking jitters

By Korea Herald
  • Published : Jul 14, 2014 - 20:59
  • Updated : Jul 14, 2014 - 20:59
South Korean shares rose 0.26 percent on Monday, rebounding from last week’s 1 percent dip as concerns over a eurozone banking crisis eased, analysts said. The local currency closed at 1,018.20 against the dollar, up 0.8 won from the previous session.

The benchmark Korea Composite Stock Price Index gained 5.14 points to 1,993.88. The index suffered a loss last week on escalating jitters over Europe’s financial stability. Trading volume was moderate at 267 million shares worth 3.07 trillion won ($3.02 billion), with gainers outpacing losers, 512 to 310.

“Portgual-based Banco Espirito Santo’s problem is not likely to develop into an overall banking crisis in Europe,” said Soh Jae-yong, an analyst at Hana Daetoo Securities. “That seems to be an individual firm’s own problem, not caused by Europe’s overall financial system.”

Rather, the local stock market is getting a boost from expectations that the government will take boosting measures to help Asia’s fourth-largest economy grow, according to analysts.

Last week, Bank of Korea Gov. Lee Ju-yeol left room for a rate hike by saying downside risks are greater than upside ones.

A new finance minister nominee also vowed to implement a series of measures aimed at boosting the economy, which is feared to relapse into a soft patch following April’s ferry disaster.

Financial, tech and construction stocks finished higher, while steelmakers and automakers had limited gains.

Market leader Samsung Electronics rose 0.16 percent to close at 1,286,000 won, and chipmaker SK hynix advanced 0.82 percent to end at 49,350 won. Naver, the operator of the country’s top Internet portal, gained 1.89 percent to end at 808,000 won.

Construction companies also finished higher. Top player Hyundai Engineering & Construction was up 1.32 percent to end at 61,200 won, and Daewoo Engineering & Construction climbed 3.35 percent to finish at 9,570 won.

In contrast, Hyundai Motor, the country’s top automaker, shed 0.45 percent to 223,000 won, and its smaller affiliate, Kia Motors, dropped 1.65 percent to end at 53,500 won. Top steelmaker POSCO also lost 1.02 percent to end at 291,500 won. (Yonhap)