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THE INVESTOR] South Korean stocks were slightly lower late morning on Aug. 29, as institutional investors offloaded shares amid indications that the US may soon raise its key interest rate.
The benchmark KOSPI shed 10.32 points, or 0.51 percent, to 2,027.18 as of 11:20 a.m. The local currency lost ground against the US dollar.
US Federal Reserve Chair Janet Yellen openly said last week that “the case for an increase in the federal funds rate has strengthened in recent months.”
Analysts here construed it as a sign of a possible rate increase next month.
“The chances of a US rate hike has grown. But its impact to South Korea’s stock market will be limited,” Han Dae-hoon, an analyst at SK Securities, said. Usually, the KOSPI recorded 2-3 percent drop, affected by such a US rate issue, he pointed out.
Market watchers will also closely monitor US job data to be released on Sept. 1 and the results of the G-20 Leaders’ Summit scheduled to open in the eastern Chinese city of Hangzhou on the weekend.
At the Seoul bourse, institutional investors net-sold stocks, while foreigners and individuals were net-buyers.
Top cap Samsung Electronics gained 0.81 percent, while leading automaker Hyundai Motor declined 1.48 percent. Naver, the nation’s dominant internet portal, lost 0.37 percent.
The South Korean won was trading at 1,123.70 won against the US greenback, down 10.00 won from the previous session’s close.
(
theinvestor@heraldcorp.com)
