S.Korea won, stocks inch lower on Malaysian jet crash

Thu Jul 17, 2014 10:45pm EDT

Related Topics

* Stocks slip, tracking weakness in global shares
    * Won poised to mark worst week since January

    SEOUL, July 18 (Reuters) - South Korea's won and
shares slid early on Friday after the downing of a Malaysian
passenger jet at the Ukraine-Russia border and Israel's launch
of a ground invasion of Gaza, prompting investors to cut their
risk exposure.
    The won was quoted at 1,031.9 to the dollar as of
0221 GMT, down 0.27 percent from Thursday's close at 1,029.1,
set to mark its biggest weekly percentage decline since late
January.
    "Seoul's foreign exchange market will react more sensitively
(compared to the first quarter) to negative offshore factors,
due to recent dollar flows and the weakened won," said Son
Eun-jeong, an analyst at Woori Futures in Seoul.
    South Korean markets had shown comparatively limited
movement towards Ukrainian offshore geopolitical tensions
earlier in the year.
    The Korea Composite Stock Price Index (KOSPI) was
down 0.39 percent at 2,013.08 points as of 0221 GMT versus
2,020.90 at Thursday's close, poised to snap a four-day winning
streak.
    Foreign investors offloaded a net 44 billion won ($42.64
million) worth of KOSPI shares near mid-session, reversing net
purchases of 660 billion won ($639.72 million) in the last three
consecutive sessions. 
    Retail investors made up for losses, purchasing a net 82
billion won ($79.47 million).
    Samsung Heavy Industries supported the main board, advancing
4.0 percent after winning a 741 billion won ($720.15 million)
order to build six gas carriers from an unnamed firm based in
Asia, expected to last until January 2017. 
    Industrial Bank of Korea (IBK) shares dropped
3.7 percent as the South Korean government put up for sale part
of its 60 percent stake in the bank, around 2.31 million shares,
at a discount of about 5 percent from Thursday's closing price.
However, the government later called off the planned sale early
in the session. 
    Naver, South Korea's leading search engine provider, fell
0.8 percent despite announcing Friday that its mobile messaging
app subsidiary LINE Corp filed for an initial public offering in
the United States, following its IPO application in Tokyo on
Wednesday. 
    September futures on three-year treasury bonds edged
down 0.02 percent to 106.98. 
    
                       0221 GMT    Prev close
 Dollar/won            1,031.9       1,029.1
 Yen/won           10.1856/916       10.1675
 *KTB futures           106.98        107.00
 KOSPI                2,013.08      2,020.90
 * Front-month futures on three-year treasury bonds
  ($1 = 1031.8000 Korean won)

 (Reporting By Lydia Lim; Editing by Jacqueline Wong)
FILED UNDER: