July 26, 2019 / 2:24 AM / 4 months ago

S.Korea stocks sag as Draghi comments dampen sentiment

    * KOSPI index drops, foreigners net sellers
    * Korean won weakens versus U.S. dollar
    * South Korea benchmark bond yield falls

    SEOUL, July 26 (Reuters) - Round-up of South Korean
financial markets:
South Korean shares fell for a third session on Friday, as
European Central Bank chief Mario Draghi's comments disappointed
investors hoping for a more dovish stance on monetary policy.
The Korean won and the benchmark bond yield dropped.
** The ECB signalled its intention to explore monetary easing
but left interest rates unchanged on Thursday, and Draghi
sounded more upbeat on the economy than investors expected.
** He said the risk of a recession in the euro zone was "pretty
low", policymakers did not discuss interest rate cuts at
Thursday's meeting and they would wait for more data before
"taking action."             

** The U.S. Federal Reserve is widely expected to cut interest
rates next week to bolster the U.S. economy, even as the U.S.
unemployment rate sits at its lowest in 50 years.
** Following ECB chief's remarks, expectations of a rate cut by
U.S. Federal Reserves have also declined, said Ryoo Yong-seok,
an analyst at KB Securities. Second-quarter earnings of major
South Korean firms also weighed on the markets, he added. 
** South Korea's July consumer sentiment fell to an eight-month
low at 95.9, slowing from 97.5 in a month ago, the Bank of Korea
said on Friday.             
** As of 0218 GMT, the Seoul stock market's main KOSPI index
        was down 13.12 points or 0.63% at 2,061.36 points.
** Foreigners were net sellers of 55.3 billion won ($46.67
million) worth of shares on the main board. 
** The won was quoted at 1,184.9 per dollar on the onshore
settlement platform           , 0.29% lower than its previous
close at 1,181.5.
** In offshore trading, the won        was quoted at 1,185.3 per
U.S. dollar, down 0.2% from the previous session, while in
non-deliverable forward trading its one-month contract
              was quoted at 1,183.9 per dollar.
** MSCI's broadest index of Asia-Pacific shares outside Japan
                was down 0.61%, after U.S. stocks dropped from
record highs. Japanese stocks         fell 0.52%.            
** The KOSPI climbed 0.75% so far this year, but lost 1.4% in
the previous 30 trading sessions.
** The current price-to-earnings ratio is 12.10, the dividend
yield is 1.28% and the market capitalisation is 1,242.04
trillion won.
** The trading volume during the session in the KOSPI index
        was 280.59 million shares and, of the total traded
issues of 887, the number of advancing shares was 112.
** The won lost 5.8% against the U.S dollar so far this year.
** In money and debt markets, September futures on three-year
treasury bonds         dipped 0.01 points to 110.86, while the
3-month Certificate of Deposit rate was quoted at 1.54%.
** The most liquid 3-year Korean treasury bond yield fell by 0.9
basis points to 1.297%, while the benchmark 10-year yield
dropped by 1.1 basis points to 1.422%.

($1 = 1,184.9000 won)

 (Reporting by Hayoung Choi, Editing by Sherry Jacob-Phillips)
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