Seoul: Shares end subdued after mixed economic data

SOUTH Korean shares closed little changed on Monday (Aug 1), and were near a 7-week high, due to broadly cautious sentiment stemming from mixed economic indicators at home and abroad. The Korean won weakened, while the benchmark bond yield rose.

The benchmark Kospi ended up 0.75 points or 0.03 per cent at 2,452.25.

The index was up for a sixth straight session, marking the longest winning streak since early December 2021 and the highest close since Jun 14.

The market showed no clear direction as economic indicators collided with each other amid prevalent slowdown concerns, said Mirae Asset Securities’ analyst Seo Sang-young.

South Korea’s exports grew at a faster annual pace in July as robust demand from the US offset weak sales to China.

China, meanwhile, reported worse-than-expected factory activity data as it struggles to recover from Covid-19 outbreaks.

Among heavyweights, Samsung Electronics fell 0.16 per cent and SK Hynix lost 0.82 per cent, while leading battery maker LG Energy Solution declined 0.59 per cent.

Battery materials company LG Chem rose 1.66 per cent and another electric-vehicle battery maker Samsung SDI jumped 2.46 per cent.

Of the total traded issues of 928 on the benchmark index, the number of advancing shares was 490.

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Foreigners were net buyers of shares worth 136.1 billion won (S$144 million) on the main board.

The won was last quoted at 1,304 per dollar on the onshore settlement platform, down 0.38 per cent.

In offshore trading, the won was quoted down 0.1 per cent, while in non-deliverable forward trading, its 1-month contract was quoted at 1,302.8.

September futures on 3-year treasury bonds dropped 0.2 point to 105.33 in late afternoon trade.

The most liquid 3-year Korean treasury bond yield rose by 5.7 basis points to 3.067 per cent, while the benchmark 10-year yield rose by 4.8 basis points to 3.175 per cent. REUTERS