Won sinks to 3-month low on Greek crisis

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Won sinks to 3-month low on Greek crisis

Korean stocks finished lower as Greek voters rejected a bailout offer and foreign and institutional investors actively sold their shares. The benchmark Kospi closed at 2,053.93, down 2.4 percent, and the secondary market Kosdaq closed at 752.01, down 2.24 percent from the previous trading day.

Most of the top five companies by market capitalization lost in shares. Market bellwether Samsung Electronics fell 3 percent to 1,230,000 won ($1,092). The only rise among the five was Korea Electric Power Corporation (Kepco), which increased slightly 0.21 percent to 47,000 won. Chipmaker SK Hynix plummeted to 40,750 won, down 4.45 percent. Hyundai Motor lost 1.48 percent to 133,000 won, while AmorePacific lost 3.83 percent to 427,000 won.

Cosmetic maker LG Household & Healthcare decreased to 737,000 won, 5.15 percent down, as a securities analyst lowered its second-quarter operating profit forecast for the company. LG Chem lost 3.03 percent to 272,000 won while Lotte Chemical plunged 6.68 percent to 279,500 won. Posco lost 2.65 percent and ended at 220,500 won. Samsung Securities plummeted 5.38 percent to 52,800 won, while Hyundai Securities lost 2.89 percent to 8,740 won. Carmaker Kia Motors dropped 1.68 percent to 43,850 won.

The nation’s largest search engine, Naver, ascended to 616,000 won, up 0.49 percent. Orion Confectionery rose by 0.72 percent to 1,117,000 won. Investors seemed to be bottom fishing before the stock value bounces back. Hotel Shilla slightly improved to 129,500 won by gaining 0.78 percent.

Government bonds rose, with the yield on the notes due June 2025 falling six basis points to 2.47 percent, Korea Exchange prices showed. The three-year yield was steady at 1.83 percent.

The won fell to a three-month low as Greece’s rejection of more austerity increased chances of a eurozone exit. The won dropped 0.3 percent to 1,126.44 a dollar in Seoul, data compiled by Bloomberg showed.

“Uncertainties about the situation in Greece going forward kept downward pressure on the won,” said Park Dae-bong, a currency trader at Nonghyup Bank, who sees the currency falling to as low as 1,140 a dollar this week. “If the euro extends its loss, the won’s weakness will also accelerate.”


BY LEE SEUNG-MIN, BLOOMBERG [ebusiness@joongang.co.kr]
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