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S.Korean shares rebounds on easing Greek woes; won falls for 3-days
May 28, 2015 / 3:12 AM / 2 years ago

S.Korean shares rebounds on easing Greek woes; won falls for 3-days

By Yeawon Choi
    SEOUL, May 28 (Reuters) - South Korean shares rebounded by
midday on Thursday, reflecting a general trend as global markets
heaved with relief after Greece said it had started to draft an
agreement with creditors, lowering the prospect of a default.
 
    The Korea Composite Stock Price Index (KOSPI), as of
0244 GMT, was up 0.7 percent at 2,122.53 points from the
previous close at 2,107.50. It fell 1.7 percent on Wednesday.
    "Risk-on sentiment was improved temporarily today on easing
Greek woes, but investors were still wary of the pace of 
greenback's rally," said Kim Yun-seo, an analyst at KTB
Investment & Securities.
    He pointed out the strong dollar was a key risk in the main
bourse.
    Pharmaceutical shares rose 2.9 percent after falling
2.4 percent on Wednesday. Thirty-four out of 38 issues in the
sector were up, with Keunwha Pharmaceutical Co Ltd 
up 7.5 percent and Chong Kun Dang Pharmaceutical Corp
 up 6.6 percent.
    Shares of Samsung SDS Co Ltd and Hyundai Glovis
Co Ltd jumped 9.3 percent and 7 percent on 
expectations they would benefit from restructuring of their
respective groups, as third-generation business leaders prepare
for succession, analysts said. 
    Foreign investors were likely to be net buyers, having
purchased 91.5 billion won ($82.58 million) worth of KOSPI
shares by midday.
    The South Korean won fell against the dollar for a third
straight session as the greenback continued its rallies after
Federal Reserve Chair Janet Yellen said on Friday she expected
the U.S. central bank to raise rates this year. 
    The won  was down 0.3 percent at 1,108.3
per dollar, compared with the previous close at 1,105.5. The won
touched 1,110.8, its weakest since March 31.
    "The upside in the won was capped by concerns that foreign
exchange authorities may intervene to check its strength against
the Japanese yen," said Jeon Seung-Ji, a foreign-exchange
analyst at Samsung Futures.
    The won, however, was bolstered by domestic exporters'
demand for settlements and foreign buying of local shares, she
added.
    June futures on three-year treasury bonds were up 
0.05 points at 109.15.
    
                      0244 GMT     Prev close
 Dollar/won            1,108.3        1,105.5
 Yen/won            8.9379/422         8.9621
 *KTB futures           109.15         109.10
 KOSPI                2,122.53       2,107.50 
 * Front-month futures on three-year treasury bonds 

 (Editing by Simon Cameron-Moore)

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