Seoul: Shares end at over 3-week high as Europe energy woes ease

SOUTH Korean shares closed up nearly 1 per cent on Thursday (Jul 21), to their highest in more than 3 weeks, as investors were relieved after gas supplies resumed along the biggest pipeline from Russia to Germany.

The won strengthened, while the benchmark bond yield inched up.

The benchmark Kospi ended up 22.31 points or 0.93 per cent at 2,409.16, closing at the highest since Jun 28.

Gas deliveries through the Nord Stream 1 pipeline resumed on Thursday and gas was flowing again, easing worries about European economies struggling with energy supplies.

Euro’s gains after the report led to the dollar’s weakness, which boosted inflows of foreign money to the local stock market, said Daishin Securities’ analyst Lee Kyoung-min.

Meanwhile, South Korea’s exports in the first 20 days of July grew 14.5 per cent from a year-ago period, but the country’s imports increased at a much faster pace of 25.4 per cent, bringing the trade balance to a US$8.1 billion deficit.

Investors will now eye whether the European Central Bank will raise its base rate by 25 basis points or 50 basis points during the policy meeting due later the day.

Among heavyweights, technology giant Samsung Electronics jumped 2.15 per cent and peer SK Hynix rose 0.49 per cent. Battery maker LG Energy Solution also gained 1.69 per cent.

Of the total traded issues of 926 on the benchmark Kospi, 563 shares advanced.

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Seoul: Shares hit 3-week high on upbeat US earnings, easing Europe recession woes

Foreigners were net buyers of 437.9 billion won (S$466 million) worth of shares on the main board.

The won was last quoted at 1,307.7 per dollar on the onshore settlement platform, up 0.4 per cent.

In offshore trading, the won was quoted up 0.4 per cent at 1,307.6 per dollar, while in non-deliverable forward trading its 1-month contract was quoted at 1,306.8.

In money and debt markets, September futures on 3-year treasury bonds rose 0.01 point to 104.68 in late afternoon trade.

The most liquid 3-year Korean treasury bond yield fell by 1.8 basis points to 3.28 per cent, while the benchmark 10-year yield rose by 0.3 basis point to 3.366 per cent. REUTERS