The Business Times

Seoul: Shares up amid China curbs in focus; won gains

Published Mon, Nov 7, 2022 · 03:54 PM

South Korean shares rose on Monday (Nov 7) amid split market sentiment over the prospects of China easing its zero-Covid stance, as investors hoped that China’s curbs will eventually be removed. The South Korean won strengthened, while the benchmark bond yield rose.

The benchmark Kospi rose 23.36 points, or 0.99 per cent, to 2,371.79 as at 6.30 GMT at close.

The dollar’s weakening has supported stock markets, and there are still hopes that China’s zero-Covid stance may change soon, which is creating positive sentiment, said Park Gwang-nam, an analyst at Mirae Asset Securities.

Among heavyweights, technology giant Samsung Electronics rose 1.4 per cent and peer SK Hynix gained 2.4 per cent, while battery maker LG Energy Solution declined 0.8 per cent.

China is sticking with a strict Covid-19 containment strategy nearly three years into the pandemic, potentially disappointing investors hoping for a quick reopening, although the authorities are making ongoing, if modest, tweaks to their management of the virus.

The trading volume during the session in the Kospi index was 385.74 million shares. Of the total traded issues of 932, the number of advancing shares was 626.

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Foreigners were net buyers of shares worth 112.5 billion won (S$112.7 million) on the mainboard.

The won was quoted at 1,401.2 per dollar on the onshore settlement platform, 1.28 per cent higher than its previous close at 1,419.2, marking the sharpest daily gain since Jul 28.

In offshore trading, the won was quoted at 1,402.5 per dollar, up 0.1 per cent from the previous day, while in non-deliverable forward trading, its one-month contract was quoted at 1,401.8.

The won has lost 15.2 per cent against the dollar so far this year.

The most liquid three-year Korean treasury bond yield rose by 6.7 basis points to 4.176 per cent, while the benchmark 10-year yield rose by 8.4 basis points to 4.262 per cent. REUTERS

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