The Business Times

Seoul: Shares end flat as China caution offsets Wall Street boost

Published Tue, Oct 25, 2022 · 03:31 PM

South Korean shares erased early gains and ended flat on Tuesday, as investors were cautious over increased volatility in Chinese equities following the Communist Party congress.

The Korean won strengthened, while the benchmark bond yield dropped on the finance minister’s remarks to cut the amount of bond issuance.

The benchmark Kospi ended down 1.09 points or 0.05 per cent at 2,235.07.

The index rose as much as 0.76 per cent in early session, tracking Wall Street’s overnight gains, but started to pare gains around the Chinese market’s open, which swung back and forth between positive and negative territories.

“The local market’s intraday moves were in line with volatile Chinese market amid a broadly wait-and-see mood,” said Seo Sang-young, an analyst at Mirae Asset Securities.

Among heavyweights, technology giant Samsung Electronics rose 0.35 per cent, peer SK Hynix gained 1.85 per cent, and battery maker LG Energy Solution advanced 0.39 per cent.

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But only 335 shares rose, out of 932 total traded issues.

Foreigners were net buyers of shares worth 78.7 billion won (S$78.2 million) on the main board.

The won ended up 0.46 per cent at 1,433.1 per dollar on the onshore settlement platform, reversing early losses to a fresh 13-year low of 1,444.2.

In offshore trading, the won was quoted up 0.8 per cent at 1,432.5 per dollar, while in non-deliverable forward trading its one-month contract was quoted at 1,432.1.

December futures on three-year treasury bonds jumped 0.31 point to 101.83.

South Korea will significantly cut the amount of treasury bonds to be issued for the rest of this year than originally planned, finance minister said.

The most liquid three-year Korean treasury bond yield fell 6.7 basis points to 4.232 per cent, while the benchmark 10-year yield dropped 8.5 basis points to 4.4 per cent. REUTERS

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