1. South Korea won firms to 1-1/2 week high as dollar loses steam, stocks edge up

South Korea won firms to 1-1/2 week high as dollar loses steam, stocks edge up

The South Korean won firmed on Monday as the strong dollar lost traction ahead of major global events this week that could increase uncertainty in financial markets worldwide.

By: | Updated: November 28, 2016 9:17 AM
A domestic referendum on constitutional reform is scheduled for Dec. 4, even as President Park Geun-hye fights for her political survival in a corruption scandal. (Reuters) A domestic referendum on constitutional reform is scheduled for Dec. 4, even as President Park Geun-hye fights for her political survival in a corruption scandal. (Reuters)

The South Korean won firmed on Monday as the strong dollar lost traction ahead of major global events this week that could increase uncertainty in financial markets worldwide. The won was up 0.7 percent against the dollar as of 0201 GMT, compared to last Friday’s onshore close of 1,177.4. It briefly touched 1,168.9 before midday, its highest since Nov. 17. “Traders as well as local exporters will keep the dollar’s gains in check this week, lifting the won, but the local currency’s gains are likely to be short-lived,” said Jeon Seung-ji, a foreign exchange analyst at Samsung Futures. Jeon said the won was likely to face pressure again ahead of a meeting by the Organisation of the Petroleum Exporting Countries (OPEC) on Nov. 30.

A domestic referendum on constitutional reform is scheduled for Dec. 4, even as President Park Geun-hye fights for her political survival in a corruption scandal. Any uncertainty from those events would send the won, a risky asset, down or keep gains limited, she added. South

Korean shares were nearly flat on Monday, as market players kept a cautious stance ahead of the OPEC meeting, according to analysts. Oil prices have slumped on worries that the cartel will not be able to agree on output cuts. The Korea Composite Stock Price Index (KOSPI) was up 0.2 percent at 1,977.46 points.

Shares in Samsung C&T, the de facto holding company of Samsung Group were up 5.6 percent after a local media report said Samsung Electronics was considering splitting itself into two in response to a proposal made by activist shareholder Elliott Management. Samsung Electronics’ shares were nearly flat, trading up 0.2 percent around midday.

Foreigners and institutions were sellers in early trade, unloading 15.7 billion won ($13.43 million) and 34.0 billion won worth of shares, respectively. Retail investors snapped up a 44.6 billion won worth to offset their sales.

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