February 20, 2013 / 11:46 PM / 4 years ago

Seoul shares to retreat as Fed minutes show policy divide

3 Min Read

SEOUL, Feb 21 (Reuters) - Seoul shares are likely to retreat
on Thursday after rising the most in five months over the
previous session, as minutes from the U.S. Federal Reserve's
latest meeting sparked concerns about sustainability of its
stimulus momentary policy.
    The minutes from the Fed's January meeting showed many
officials worrying over the potential cost of more asset
purchases, suggesting that the central bank may slow down its
buying or even stop, sooner than expected.  
    "It is not that the Fed decided to end its 'quantitative
easing', but that there was a debate over the policy. But this
served as an excuse for U.S. investors to take profits after
recent Wall Street rallies," said Cho Byeong-hyun, an analyst at
Tong Yang Securities.
    "Korean stock markets will not fall much because of lower
valuations and as currency concerns have subsided," he said.  
    Foreign investors are returning to the local stock markets
this month after they dumped a net 1.9 trillion Korean won
($1.76 billion) of stock on the main bourse in January as the
weaker yen and stronger won dimmed the prospects of South Korean
exporters.
    But the won may have some room to weaken against the
dollar with president-elect Park Geun-hye on Wednesday
emphasising the need to ensure the stability of the local
currency.  
    Expectations that the incoming president, set to be
inaugurated on Monday, would introduce economic stimulus
measures also support the stock markets, analysts said.
    The Korea Composite Stock Price Index (KOSPI) ended
up 1.95 percent at 2,024.64 points on Wednesday, its highest
closing price since Jan.2 and marking its biggest daily
percentage gain since Sept. 14. 
    Foreign investors snapped up stocks worth a net 568.9
billion won ($526 million) on the main bourse, the largest
volume since Sept.14, according to revised data from the Korea
Exchange. 
------------------MARKET SNAPSHOT @ 22:28 GMT-------------------
 

---STOCKS TO WATCH---  
      
    **HYUNDAI ELEVATOR **
    The unit of Hyundai Group said on Wednesdays that it plans
to issue new common stock worth 110.9 billion Korean won ($103
million) at a 69,300 won per share for operational funds.  
($1 = 1078.3500 Korean won)

 (Reporting by Hyunjoo Jin; Editing by Eric Meijer)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below