S Korean shares close lower on gloomy U.S. economic outlooks

18:46, July 22, 2010      

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South Korean shares on Thursday ended lower following U.S. falls due to gloomy economic outlooks made by the head of Federal Reserve, local analysts said.

The benchmark Korea Composite Stock Price Index (KOSPI) fell 13. 25 points, or 0.76 percent, to close at 1,735.53, according to the bourse operator Korea Exchange (KRX).

The index fell as Fed Reserve Chairman Ben Bernanke, in a congressional testimony said "the economic outlook remains unusually uncertain," raising concerns about the recovery pace of the U.S. economy.

Following his remarks, the U.S. stock markets were put into turmoil, dropping more than 1 percent, which in turn pulled down local stocks as well.

Foreigners stayed as net buyers despite unfavorable overseas factors, together with retail investors, but institutions stood as net sellers.

Electronic shares marked the greatest fall, down 1.94 percent, while construction and securities shares lost 1.50 percent and 1. 38 percent, respectively.

Among large market caps, Samsung Electronics saw a fall as well, shedding 1.10 percent.

The junior bourse KOSDAQ ended lower as well, down 12.01 points, or 2.42 percent, to close at 484.72.

The derivatives also ended down, with the KOSPI 200 Futures market retreating 1.65 points, or 0.72 percent, to 226.23, according to the bourse operator.

Meanwhile, the local currency made a slight downturn against one U.S. dollar, down 0.60 won to end trading at 1,204.00 won.

Bond prices closed higher, with the yield on three-year Treasury notes falling 0.05 percentage point to 3.82 percent.

Source: Xinhua


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