Seoul: Shares end lower on profit-taking in tech stocks, Asia growth worries

[SEOUL] South Korean shares fell on Wednesday (Oct 20), reversing early gains, as investors booked profits in technology stocks and on worries about growth across the region. The won strengthened and the benchmark bond yield rose.

The benchmark Kospi ended 15.91 points or 0.53 per cent down at 3,013.13, reversing early gains of as much as 0.60 per cent. It ended 0.74 per cent higher on Tuesday.

Among the heavyweights, chip giant Samsung Electronics fell 0.42 per cent, while peer SK Hynix rose 0.20 per cent. Battery maker LG Chem rose 1.08 per cent but platform company Naver ended flat.

Samsung Electronics has gained as much as 3.95 per cent in the past 4 days, while LG Chem and Naver have surged as much as 19.5 per cent and 12.7 per cent, respectively, over the past 2 weeks.

Foreigners were net sellers of 73.2 billion won (S$83.7 million) worth of shares on the main board.

The International Monetary Fund on Tuesday slashed this year's economic growth forecast for Asia and warned that a fresh wave of Covid-19 infections, supply chain disruptions and inflation pressures pose downside risks to the outlook.

The won ended at 1,174.2 per dollar on the onshore settlement platform, 0.38 per cent higher than its previous close.

In offshore trading, the won was quoted at 1,174.9 per dollar, unchanged from the previous day, while in non-deliverable forward trading its 1-month contract was quoted at 1,175.4.

In money and debt markets, December futures on 3-year treasury bonds rose 0.01 point to 108.65, while the 3-month Certificate of Deposit rate was quoted at 1.09 per cent in late afternoon trade.

The benchmark 10-year yield rose by 1 basis point to 2.390 per cent.

REUTERS