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S.Korea stocks, won rise after U.S. GDP data, foreign inflows
June 26, 2014 / 2:55 AM / in 3 years

S.Korea stocks, won rise after U.S. GDP data, foreign inflows

* Stocks, won supported by weak U.S. GDP data
    * KOSPI bounces back from previous session's fall

    SEOUL, June 26 (Reuters) - South Korean shares rebounded on
Thursday morning as weaker-than-expected U.S. growth bolstered
bets that the Federal Reserve will keep its interest rates on
hold for longer,    prompting foreign capital flows into South
Korea.
    The Korea Composite Stock Price Index (KOSPI) was up
0.4 percent at 1,989.21 points as of 0237 GMT, recouping the
previous session's 0.6 percent fall.
    "The U.S. growth figure was far enough off to spur a
positive effect in the market," said Lim Dong-rak, an analyst at
Hanyang Securities.
    Foreign investors positioned as net buyers near mid-session
by purchasing 31 billion won ($30.4 million) worth of KOSPI
shares after selling a net 22 billion won worth on Wednesday. 
    The U.S. economy contracted much more severely than first
estimated in the first quarter, revised data showed on
Wednesday, with gross domestic product falling 2.9 percent from
a year ago compared to a 1.0 percent decline projected last
month. 
    "As investors remain wary over weak corporate earnings and
external risks, a strong rise appears unlikely in the remainder
of the month," Lim added.
    Samsung Electronics Co Ltd, which accounts for
16.4 percent of the KOSPI, gained 1 percent, following the
previous session's 1.9 percent drop. 
    The tech giant's share price has been volatile recently on a
grim earnings outlook, with its chief financial officer
expecting the second quarter earnings to be "not that good" on
Wednesday. 
    Steelmaker POSCO gained 1.7 percent while Naver
Corp, owner of messaging application Line Corp,
added 2.1 percent.
    State-run utilities company Korea Electric Power Corp
 dropped 6 percent after the government on Wednesday
said it will maintain energy charges on hold until later this
year, weakening earnings prospect for the company.
    In the currency market, the won strengthened to
briefly hit a one-week high against the dollar on exporters'
demand for month-end settlements and stock inflows.
    However, caution about a possible dollar-buying intervention
by the South Korean foreign exchange authorities to curb the
pace of the won's appreciation capped gains.
    The local currency was quoted at 1,017.3 versus
the dollar as of 0237 GMT, up 0.4 percent from Wednesday's
onshore close at 1,021.0. It strengthened to as much as 1,017.1,
the strongest intraday level since June 19.
                       0237 GMT    Prev close
 Dollar/won            1,017.3       1,021.0
 Yen/won        10.0000/9.9931       10.0064
 *KTB futures           106.29        106.32
 KOSPI                1,989.21      1,981.77
 * Front-month futures on three-year treasury bonds
($1 = 1017.8000 South Korean Won)

 (Reporting by Jungmin Jang; Editing by Eric Meijer)

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