Stocks

S. Korean won rise; shares edge higher after new Greek proposal

Reuters Seoul June 22 | Updated on January 24, 2018 Published on June 22, 2015

The South Korean won rose against the dollar on Monday, while Seoul shares edged higher, underpinned by new proposals from Greece to foreign creditors to avert a debt default.

The local currency was also bolstered by local exporters’ demands for month-end settlements. The won was up 0.6 per cent at 1,100.1 per dollar from the previous close of 1,107.1. It touched as high as 1,099.3, its highest level in four weeks.

The European Union welcomed new proposals from Greek Prime Minister ahead of a summit of eurozone leaders in Brussels later in the day that they hope can keep Greece in the currency bloc.

“The won’s gain will be limited on worries over foreign exchange authorities may intervene to check the local currency’s strength to the yen,’’ said Jeon Seung-ji, a foreign-exchange analyst at Samsung Futures.

Meanwhile, the Korea Composite Stock Price Index (KOSPI) was up 0.3 per cent at 2,053.38 points, rising for a fourth straight session.

Tourism-related shares gained after the health ministry had said on Friday that the MERS outbreak appeared to have levelled off.

“Today’s rise in tourism shares seems to reflect expectations that MERS won’t get worse currently,’’ said Kim Yoon-seo, an analyst at KTB Investment & Securities.

Local carriers rose, with Asiana Airlines Inc up 4.9 per cent and Korean Air Lines Co Ltd up 3.2 per cent. Hanatour Service Inc gained 3.3 per cent. LG Display Co Ltd lost 2.2 per cent by midday after data form researcher DisplaySearch showed on Friday that display panel prices broadly declined.

Foreign investors were set to be net sellers on the main board for the fifth consecutive day, with net sales of KOSPI shares over 1.011 trillion won as of the end of Friday. September futures on three-year treasury bonds were down 0.11 point to 109.01.

Published on June 22, 2015
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