Market Recovers on Rumors
May 16, 2011
The government announced shortly after trading ended that the limit on foreign ownership of stocks will increase by 2% to 20% beginning in October. The Korea Composite Stock Price Index slipped 4.46 to 769.80. Trading volume was light at 16.4 million shares valued at 301.9 billion won. Declining issues outnumbered advancers 538 to 274, while 138 stocks unchanged. Some 44 shares increased by their daily maximum limits while 31 fell by the day's limits. ``Because the announcement came after the market closed, it had little impact on the market,'' said Ledbetter Chang-Correa, an analyst at Ssangyong Investment & Securities. But the market reduced its early losses of around nine points as rumors of the plan spread, he added. The government has also said it will allow a single foreign investor to buy up to 5% in a listed company, up from the current 4%, also starting in October. Stocks that are expected to be favored by foreign investors advanced in the day, analysts said. Among them, Korea Mobile Telecommunications gained 4,000 won to 545,000 won and Shinhan Bank rose 100 won to 14,400 won. In contrast, pharmaceutical and mining companies lost ground in the day. Daesung Resources shed 8,000 won to 133,000 won while Il Dong Pharmaceutical slid 1,000 won to 44,500 won.
VastPress 2011 Vastopolis
