Seoul: Shares hit lowest close in over a month on pandemic lockdown worries

[SEOUL] South Korean shares closed at their lowest in more than a month on Thursday amid worries over surging coronavirus infections globally and the economic fallout of new lockdowns in Europe.

The won edged down, while the benchmark bond yield rose.

The Kospi closed 18.59 points or 0.79 per cent lower at 2,326.67, recouping some of its earlier losses. The index tumbled as much as 1.9 per cent during the session and marked the third session of losses in five.

Germany and France ordered their countries back into lockdown, as a massive second wave of coronavirus infections threatened to overwhelm Europe before the winter.

South Korea reported 125 new virus cases as of Wednesday midnight, higher than the 103 a day earlier.

Chip giant Samsung Electronics slid 1.5 per cent after the company said it expects fourth-quarter profit to fall due to weak server chip demand and rising smartphone competition.

Meanwhile, the country's exports likely fell in October as businesses worked two days less this month due to the Chuseok holiday, a Reuters poll showed on Thursday, while resurging coronavirus cases abroad overshadowed the outlook.

Foreigners were net sellers of 535.6 billion won (S$643.5 million) worth of shares on the main board.

The won ended at 1,131.4 per US dollar on the onshore settlement platform, 0.07 per cent lower than its previous close at 1,130.6.

In offshore trading, the won was quoted at 1,131.5 per dollar, up 0.3 per cent from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,131.6.

In money and debt markets, December futures on three-year treasury bonds fell 0.05 point to 111.81.

The most liquid three-year Korean treasury bond yield rose by 0.9 basis point to 0.925 per cent, while the benchmark 10-year yield rose by 2.9 basis points to 1.527 per cent.

REUTERS