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Stock Market Unscathed by NK Rocket Launch

Posted April. 07, 2009 08:50,   


Domestic financial markets remained stable yesterday despite North Korea`s rocket launch the day before.

The benchmark stock index KOSPI in Seoul even surpassed 1,300 in trading, with both the KOSPI and tech-heavy KOSDAQ setting an annual record. The won even saw its highest value against the U.S. dollar in three months.

The KOSPI jumped 14.1 points (1.1 percent) from Friday to close at 1,297.85 for its fifth straight day of rise. The KOSDAQ also grew 8.78 points (two percent) to finish at 447.94.

The won’s value surged due to net buying by foreign investors and the robust stock market. The won-dollar rate fell 31 points from Friday to close at 1,309.50, the lowest since 1,292.50 Jan. 7. As stock prices grew and the won surged, the KOSPI and the won-dollar rate even temporarily had the same figure in intraday trading.

Financial experts said the North`s rocket launch did not affect the South Korean financial market since it was long expected and instead decreased uncertainty surrounding North Korea.