Seoul: Shares end upward streak, won hits more than 13-year low

SOUTH Korean shares fell on Friday (Aug 19), marking their first weekly decline in 5, as concerns weighed over the tightening stance reaffirmed by US monetary policymakers. The South Korean won touched a more than 13-year low, while the benchmark bond yield jumped.

The benchmark Kospi ended down 15.36 points, or 0.61 per cent, at 2,492.69, falling for a third straight session after hitting a more than 2-month high earlier the week.

The index fell 1.39 per cent for the week, its biggest weekly fall since early July, ending a 4-week rising streak.

The Federal Reserve needs to keep raising borrowing costs to bring high inflation under control, a string of US central bank officials said on Thursday, even as they debated how fast and how high to lift them.

On top of their comments, robust economic data in the United States boosted the dollar, leading foreign investors to sell local stocks, said Huh Jae-hwan, analyst at Eugene Investment and Securities.

Overseas investors were net sellers of shares worth 89.6 billion won (S$93.6 million) on the main board, after a 3-session buying streak.

Among heavyweights, technology giant Samsung Electronics fell 0.98 per cent but SK Hynix rose 0.73 per cent, while battery maker LG Energy Solution lost 1.11 per cent.

Internet-based lender Kakaobank dropped 8.17 per cent to its lowest close on record. Mobile financial services provider Kakaopay rebounded 0.58 per cent after a 6.56 per cent drop the previous session, while parent Kakao fell 3.16 per cent.

The won was last quoted at 1,325.9 per dollar on the onshore settlement platform, 0.39 per cent lower than its previous close, after hitting its weakest since Apr 29, 2009 at 1,328.8.

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Seoul: Shares track Wall Street lower, won touches 1-month low

For the week, the currency lost 1.77 per cent against dollar, the biggest drop in 5 weeks.

In offshore trading, the won was quoted up 0.1 per cent at 1,325.9 per dollar, while in non-deliverable forward trading its 1-month contract was quoted at 1,325.5.

In money and debt markets, September futures on 3-year treasury bonds dropped 0.25 point to 105.02 in late afternoon trade.

The most liquid 3-year Korean treasury bond yield rose by 7.9 basis points to 3.204 per cent, while the benchmark 10-year yield jumped by 9.5 basis points to 3.316 per cent. REUTERS