South Korean stocks hit 2-mo low on U.S. political uncertainties; won flat

26 Dec, 2018

** South Korea's KOSPI stock index slumped on Wednesday over persisting political uncertainties in the United States as the market reopened after the Christmas holiday. The Korean won was flat while bond yields fell.

** U.S. President Donald Trump on Tuesday said the partial shutdown of the federal government was going to last until his demand for funds to build a wall on the U.S.-Mexico border is met.

** Trump on Tuesday expressed confidence in Treasury Secretary Steven Mnuchin amid worries over a weakening economy and a stock market slump, but repeated his criticism of the U.S. Federal Reserve, saying it has raised interest rates too quickly.

** Investors also were grappling with the federal government shutdown and reports that President Donald Trump privately discussed the possibility of firing the Fed chairman.

** At 06:32 GMT, the KOSPI closed down 27 points or 1.31 percent at 2,028.01, hitting a near two-month low.

** Shares of Doosan Heavy Industries & Construction  ended 9.9 percent lower as the company's nuclear power plant business is hit by the government's nuclear phase-out policy.

** The won was quoted at 1,125.4 per dollar on the onshore settlement platform, 0.02 percent weaker from its previous close at 1,125.2.

** In offshore trading, the won was quoted at 1,125.5 per U.S. dollar, down 0.12 percent from the previous day, while in one-year non-deliverable forwards it was being asked at 1,107.15 per dollar.

** MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.34 percent, after U.S. stocks ended the previous session with sharp losses. Japanese stocks rose 0.89 percent.

** The KOSPI is down around 16.7 percent so far this year, and down by 1.22 percent in the previous 30 days.

** The current price-to-earnings ratio is 12.10, the dividend yield is 1.28 percent and the market capitalisation is 1,242.04 trillion won.

** The trading volume during the session on the KOSPI index  was 314,188,000 shares and, of the total 896 traded issues, the number of advancing shares was 128.

** Foreigners were net buyers of 56,729 million won worth of shares.

** The U.S dollar has risen 5.54 percent against the won this year. The won's high for the year is 1,053.55 per dollar on April 2 and the low is 1,146.26 on Oct. 11.

** In money and debt markets, March futures on three-year treasury bonds rose 0.1 point to 109.25.

** The Korean 3-month Certificate of Deposit benchmark rate was quoted at 1.9 percent, while the benchmark 3-year Korean treasury bond yielded 1.807 percent, lower than the previous day's 1.85 percent.

Copyright Reuters, 2018

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