June 25, 2020 / 7:26 AM / 12 days ago

S.Korean shares end 2.3% lower as second wave dents risk appetite

* KOSPI drops, foreigners net sellers

* Korean won weakens versus U.S. dollar

* South Korea benchmark bond yield falls

* For the midday report, please click

SEOUL, June 25 (Reuters) - Round-up of South Korean financial markets:

** South Korean shares plunged on Thursday after a surge in coronavirus cases and the International Monetary Fund’s downgrade to global economic projections dented sentiment, while the government’s proposal to expand its capital gains taxes also weighed. The Korean won and the benchmark bond yield weakened.

** The Seoul stock market’s main KOSPI closed down 49.14 points, or 2.27%, at 2,112.37.

** Several U.S. states reported record jumps in COVID-19 cases, while the World Health Organization expects the number of global cases to touch 10 million next week.

** South Korea proposed expanding its capital gains taxes to include a larger number of affluent stock investors. It would also mark a significant expansion of current rules as capital gains taxes are only applied to large shareholders with stakes exceeding 1% or 1 billion won ($831,373) of listed stocks.

** The government proposal’s effects on large-cap investors are inevitable and will likely lead to a shock in some degree, said Hi Investment & Securities’ analyst Chang Hee-jong, adding that a reduction in transaction taxes should cushion some of the impact.

** Separately, South Korea’s central bank will ready steps to unwind monetary stimulus once the coronavirus crisis eases, although it would maintain its accommodative approach for now given current challenges, its chief said on Thursday.

** Foreigners were net sellers of 276.6 billion won ($229.49 million) worth of shares on the main board.

** The won closed trading 0.44% weaker at 1,204.7 per dollar on the onshore settlement platform.

** In offshore trading, the won was quoted up 0.1% at 1,205.1 per U.S. dollar, while in non-deliverable forward trading its one-month contract was quoted at 1,204.9.

** In money and debt markets, September futures on three-year treasury bonds rose 0.02 point to 112.15.

** The most liquid 3-year Korean treasury bond yield rose 0.1 basis point to 0.819%, while the benchmark 10-year yield fell by 1.4 basis points to 1.349%.

$1 = 1,205.2600 won Reporting by Jihoon Lee, Editing by Sherry Jacob-Phillips

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