Seoul: Shares end higher in shaky trade, suffer weekly loss

SOUTH Korean shares closed higher on Friday (Jul 15), lifted by heavyweight stocks, although worries around aggressive tightening by the US Federal Reserve kept a lid on gains and led the benchmark index to post a weekly loss.

The country’s won currency ended onshore trade down more than 1 per cent after hitting its fresh 13-year low against the dollar, while the bond yields posted moderate drops.

The benchmark Kospi ended up 8.66 points or 0.37 per cent at 2,330.98. For the week, it fell 0.8 per cent.

In broader Asia, stocks were depressed, with the key index for the region outside Japan hitting a 2-year low as a fresh slew of rate hikes around the world deepened concerns about the outlook for global economic growth.

Weighing on sentiment, data showed on Friday China’s economy contracted sharply in the second quarter while annual growth slowed significantly, highlighting the colossal toll on activity from widespread Covid lockdowns.

Local markets showed a muted reaction to a call by South Korean President Yoon Suk-yeol on Friday for pre-emptive action against financial risks, saying they spread fast as stress keeps building in financial markets around the world.

Among heavyweights, technology giant Samsung Electronics rose 4.35 per cent and peer SK Hynix added 5 per cent, while battery maker LG Energy Solution gained 0.13 per cent.

Foreigners were net buyers of 263.5 billion won (S$278.8 million) worth of shares on the main board.

The won was quoted at 1,326.1 per dollar on the onshore settlement platform, down 1.06 per cent. For the week, it weakened 1.94 per cent, the worst in 5 weeks.

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In offshore trading, the won was down 0.8 per cent, while in non-deliverable forward trading its 1-month contract was quoted at 1,327.6.

The Kospi has fallen 21.72 per cent so far this year, and lost 13.5 per cent in the previous 30 trading sessions.

The trading volume was 310.56 million shares. Of the total traded issues of 926, the number of advancing shares was 258.

The won has lost 10.4 per cent against the dollar so far this year.

In money and debt markets, September futures on 3-year treasury bonds rose 0.11 point to 104.88.

The most liquid 3-year Korean treasury bond yield fell by 4 basis points to 3.223 per cent, while the benchmark 10-year yield fell by 4.2 basis points to 3.263 per cent. REUTERS