Seoul: Inflation, Covid-19 woes push stocks toward fifth weekly decline

[SEOUL] South Korean shares were on course for a fifth weekly decline as surging Covid-19 cases and broadening inflationary risks dented investor sentiment. The Korean won weakened, while the benchmark bond yield rose on Friday (Nov 19).

The benchmark Kospi was up 3.31 points, or 0.11 per cent, at 2,950.69, as of 1.02am GMT. However, the index declined 0.7 per cent so far this week.

Among the heavyweights, technology giant Samsung Electronics traded flat and peer SK Hynix rose 0.91 per cent, while LG Chem fell 1.93 per cent and Naver slipped 0.12 per cent.

South Korea reported 3,034 new Covid-19 cases on Friday, 24 hours after logging a daily record high of 3,292 new cases.

South Korea's producer prices index in October posted its sharpest growth in 13 years, central bank data showed on Friday, underlining oil-led inflationary pressure and supporting further policy tightening.

Foreigners were net buyers of 19.3 billion won (S$22.1 million) worth of shares on the main board.

The won was quoted at 1,182.7 per dollar on the onshore settlement platform , 0.19 per cent lower than its previous close at 1,180.4.

In offshore trading, the won was quoted at 1,183.1 per dollar, down 0.1 per cent from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,183.5.

The Kospi has risen 2.69 per cent so far this year, but gained 1.3 per cent in the previous 30 trading sessions.

The trading volume during the session in the Kospi index was 224.12 million shares. Of the total traded issues of 928, the number of advancing shares was 347.

The won weakened 8.2 per cent against the dollar so far this year.

In money and debt markets, December futures on 3-year treasury bonds fell 0.03 points to 108.52.

The most liquid 3-year Korean treasury bond yield rose by 1.1 basis points to 1.964 per cent, while the benchmark 10-year yield advanced 1.8 basis points to 2.356 per cent.

REUTERS