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S. Korea Shares

S. Korea Shares S. Korea Shares

The South Korean stock market is likely to trade flat this week despite abated woes from Scotland and the US Federal Reserve, due to lack of growth momentum compounded by Hyundai Motor’s plunge on the main bourse, analysts said according to News Now. The benchmark Korea Composite Stock Price Index climbed 0.58 percent from the previous week to close at 2,053.82. Seoul shares lost ground earlier last week on weak economic data from China, the country’s No. 1 trading partner.

Sentiment ran cautious ahead of the two-day US Federal Open Market Committee, where the Federal Reserve pledged to keep interest rates at the current near-zero level for a “considerable time,” removing speculation of an early rate hike.

The local stock market plunged Thursday when shares of Hyundai Motor and its affiliates jointly lost ground after the automotive group pledged 10.55 trillion won ($10.11 billion) to buy land from state power provider Korea Electric Power Corp.

The price, far above the appraised 3 trillion won, scared investors, raising worries about the group’s liquidity down the road.

 

Financialtribune.com