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Seoul: Won, stocks down on anxiety over economic outlook

Friday, April 8, 2016 - 10:35

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[SEOUL] The South Korean won and shares fell on Friday morning as another drop in global oil prices and worries about the global economy revived investors' demand for safe-haven assets.

The won was down 0.4 per cent, standing at 1,156.2 per dollar as of 0156 GMT. The currency was down nearly 1 per cent in early trade, marking its lowest intraday level in two weeks but it recouped some of the losses on exporters' buying.

"Heightened concerns over global economic growth, unstable oil prices, and the dramatic rise of Japanese yen are all dragging the won down," said Park Sung-woo, a foreign exchange analyst at NH Futures.

Mr Park added that stock dividend payouts was also pressuring the won as investors repatriated their profits. Foreigners were scheduled to receive dividends from Hyundai Motor Co, Shinhan Financial Group Co Ltd, SK Hynix and LG Display Co Ltd on Friday, according to data compiled by Reuters.

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South Korean shares were set for their third straight week of losses as the Korea Composite Stock Price Index (KOSPI) was down 0.6 per cent at 1,961.14 points.

Foreign investors were poised to be net sellers after two days of buying and sold 15.4 billion Korean won (S$18 million) worth of KOSPI shares near mid-session.

Decliners far outnumbered advancers 543 to 260.

Samsung Electronics Co Ltd extended its losses from the prior day and was down 1.7 per cent.

The sub-index for iron, steel and metal underperformed the broader market with major steelmakers Posco down 1.9 per cent and Hyundai Steel Co down 2.8 per cent.

June futures on three-year treasury bonds gained 0.05 points to trade at 110.33.

REUTERS

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