Regulator set to tighten monitoring on MERS-related stocks

South Korea's top financial regulator said Monday that it will beef up the monitoring of the price movement of stocks related to the fast-spreading Middle East Respiratory Syndrome on the local equity market.
  

The country reported its sixth death from MERS earlier in the day, with the total number of people diagnosed with the disease here rising to 87.
  

The fatal illness has hit the stock market hard, dragging down shares of tourism-related companies, especially cosmetics firms and retailers, as the disease would keep big-buying Chinese tourists from visiting South Korea.
  

On the other hand, Okong Corp., a surgical mask maker, soared to 6,480 won on the secondary KOSDAQ bourse on Monday from 3,620 on May 19, a day before an outbreak of MERS. Another company KM Corp. surged to 7,800 won from 4,760 won over the period.
  

"Since the MERS outbreak, some stocks have showed rollercoaster performances and groundless rumors have spread through social network services and internet sites," said the Financial Services Commission. "They may deceive retail investors and undermine confidence in the financial market."
  

The FSC said it will cooperate with the Financial Supervisory Service, the financial watchdog, and the Korea Exchange, the bourse operator, to keep an eye on the stock market and cyberspace to fend off swindlers who raise stock prices by spreading rumors and luring individual investors.
  

It said it will issue warnings on MERS-related hot stocks that seesawed without reason and if necessary, it will launch a probe into rumormongers along with state investigators. (Yonhap)