The Business Times

Seoul: Shares end higher on hints of cooling economy

Published Wed, Oct 5, 2022 · 03:39 PM

South Korean shares ended higher on Wednesday (Oct 5), buoyed by chipmakers and electric-vehicle battery manufacturers and on hopes of a slower pace of monetary policy tightening globally, although gains were capped as investors locked in profit.

The Korean won jumped, while the benchmark bond yield rose.

The benchmark Kospi ended up 5.84 points or 0.26 per cent at 2,215.22, following a 2.5 per cent jump in the previous session.

A new report showing shrinking US job openings, a weaker read of US manufacturing data, and a smaller-than-expected rate increase by the Australian central bank all contributed to investor speculation that a central bank shift to less aggressive rate hikes could be looming.

“Investors booked profits from recent sharp gains, amid lack of confidence ahead of US employment and inflation data this week and next week,” said Huh Jae-hwan, an analyst at Eugene Investment and Securities.

Among South Korean heavyweights, technology giant Samsung Electronics rose 1.45 per cent and peer SK Hynix jumped 4.18 per cent. Battery makers LG Energy Solution, Samsung SDI and SK Innovation advanced 5.51 per cent, 2.34 per cent and 1.62 per cent, respectively.

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Automakers Hyundai Motor and Kia fell 1.39 per cent and 2.34 per cent, respectively, while tech platform operator Naver slumped 7.08 per cent and peer Kakao lost 2.5 per cent. Less than a third shares advanced of 931 traded issues.

Foreigners were net buyers of shares worth 77.3 billion won (S$77.8 million) on the main board, extending their buying streak to a fourth session.

The won was last quoted at 1,410.1 per dollar on the onshore settlement platform, 1.16 per cent higher than its previous close.

The currency strengthened for a fourth straight session and posted its best daily performance since Jul 28.

In money and debt markets, December futures on three-year treasury bonds fell 0.29 point to 102.05.

The most liquid three-year Korean treasury bond yield rose by 5.8 basis points to 4.142 per cent, while the benchmark 10-year yield climbed 6.1 basis points to 4.068 per cent. REUTERS

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