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2 months ago
S.Korea stocks volatile after Moon wins presidency, won down
May 10, 2017 / 2:58 AM / 2 months ago

S.Korea stocks volatile after Moon wins presidency, won down

3 Min Read

    * Shares succumb to profit-taking in volatile trade
    * KOSPI rose over 7 pct in past 10 sessions
    * Won weaker on tensions between N.Korea and United States

    SEOUL, May 10 (Reuters) - South Korean shares were down in
mid-morning trade on Wednesday, following wild fluctuations
after liberal politician Moon Jae-in won the presidential
election as investors took profit. 
    Moon's win was largely seen as positive for the economy, but
many investors took profit from stocks which had sharply
escalated to a record high in recent sessions.             
    The Korea Composite Stock Price Index (KOSPI)         was
down 0.7 percent at 2,276.43 points as of 0250 GMT. The index
climbed as high as 2,323.22 but also swung into negative
territory earlier.
    Ratings agency Moody's said Moon's election cleared any
uncertainty that may have arisen from the political transition
following a political scandal that saw former President Park
Geun-hye impeached.             
    Rhoo Yong-seok, a stock analyst at KB Securities, said it
looked to be the right time for massive profit-taking.
    The KOSPI has risen around 7.2 percent during the past 10
sessions. 
    "It is true that there lie expectations about the new
government spurring domestic demand, but the thing is that it
will obviously take some time for actual policies to be carried
out," Rhoo said. 
    Rhoo added he expects some more profit-taking throughout
this week.
    Offshore investors were set to be net buyers for a fourth
straight session, purchasing 10.1 billion won ($8.91 million)
worth of KOSPI shares near mid-session. 
    Retailers such as cosmetics company Amorepacific Corp
            rose as much as 5.4 percent on hopes the new South
Korean government would ease tensions with China over the
Terminal High Altitude Area Defense system (THAAD) issue. The
dispute has led to an economic boycott of Korean goods and
tourism.
    The spinoff and separate listing of three Hyundai Heavy
Industries'             business divisions, which are Hyundai
Robotics Co Ltd            , Hyundai Construction Equipment Co
Ltd            , and Hyundai Electric & Energy Systems
           , began trading on Wednesday.
    Decliners outnumbered advancers 439 to 356.
    The South Korean won        edged down as tensions between
North Korea and the United States rose after Pyongyang raised
the number of Americans in their custody to four on Tuesday.
            
    The won            was quoted at 1,133.3 to the dollar, down
0.2 percent compared with the previous close of 1,131.4.
    June futures on three-year treasury bonds         shed 0.06
point to 109.30. 
    
                       0250 GMT    Prev close
 Dollar/won             1,133.3       1,131.4
 Yen/won              9.9578/57        9.9838
 *KTB futures            109.39        109.35
 KOSPI                 2,276.43      2,292.76
 * Front-month futures on three-year treasury bonds
    

 (Reporting by Dahee Kim; Editing by Jacqueline Wong)
  

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