Seoul: Samsung-led tech rally boosts South Korea shares for second session

[SEOUL] South Korean shares gained for a second straight session, buoyed by Samsung Electronics and other tech stocks, and as the country reported a drop in Covid-19 cases. The won strengthened, while the benchmark bond yield dropped.

The benchmark Kospi closed up 17.69 points or 0.74 per cent at 2,401.91 on Tuesday, following a 0.67 per cent gain in the previous session.

Samsung Electronics surged 3.89 per cent to extend gains to a second session after the chip giant won a US$6.64 billion supply contract from US-based Verizon.

Peer SK Hynix rose 1.28 per cent and the sub-index for electric and electronics also jumped 3.03 per cent.

The country reported 136 new cases, as of Monday, after the rate fell to a three-week low of 119. The daily tally has steadily dropped since reaching a peak last month after the government imposed unprecedented social distancing rules.

"Today's Kospi rally is entirely about Samsung Electronics ... A series of news of (Samsung's) supply contracts and production consignment from global companies stimulated its earnings expectation and led to foreign buying," said Daishin Securities analyst Lee Kyoung-min.

Foreigners were net sellers of 30.5 billion won (S$35.05 million) worth of shares on the main board.

The won ended trading at 1,186.4 per US dollar on the onshore settlement platform, 0.16 per cent higher than its previous close at 1,188.3.

In offshore trading, the won was quoted at 1,186.5 per dollar, up 0.1 per cent from the previous session, while in non-deliverable forward trading its one-month contract was quoted at 1,186.5.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.22 per cent.

In money and debt markets, September futures on three-year treasury bonds rose 0.12 point to 111.78.

The most liquid three-year Korean treasury bond yield fell by 2.2 basis points to 0.950 per cent, while the benchmark 10-year yield fell by 1.9 basis points to 1.552 per cent.

REUTERS