Seoul: Shares erase early gains to end marginally higher as dollar rebounds

SOUTH Korean shares ended marginally higher on Thursday (Sep 29), erasing nearly all of early gains on US dollar’s rebound against the British sterling. The won also inched up, while the benchmark bond yield fell.

The benchmark Kospi closed up 1.64 points or 0.08 per cent at 2,170.93.

The index rose as much as 1.9 per cent in early trade, rebounding from its lowest since July 2020 hit in the previous session, but erased most of the gains near the close.

Britain’s chief secretary to the Treasury said he disagreed with concerns raised by the International Monetary Fund about the government’s tax-cutting budget that has roiled markets.

The South Korean president’s comments indicating measures to stabilise financial markets also boosted sentiment, following authorities’ preparation to reactivate a stock market stabilisation fund.

“Chipmakers underperformed other heavyweights on caution ahead of earnings announcement of Micron Technology in the United States, adding pressure on the index,” said Daishin Securities analyst Lee Kyoung-min.

Among heavyweights, technology giant Samsung Electronics fell 0.57 per cent and peer SK Hynix lost 0.49 per cent, while battery maker LG Energy Solution rose 1.5 per cent.

Biopharmaceutical stocks tracked Wall Street’s upbeat mood led by Biogen. Samsung Biologics jumped 6 per cent and Celltrion added 2.7 per cent, though SK Bioscience fell 2.65 per cent.

Foreigners were net buyers of shares worth 218.3 billion won (S$218.5 million) on the main board, snapping a 7-session selling streak.

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The won opened its onshore trade 1.08 per cent higher, but the currency reversed course to end the session with a slight 0.07 per cent gain at 1,438.9 per dollar. In offshore trading, the won was quoted down 1.1 per cent at 1,439.8.

In money and debt markets, December futures on 3-year treasury bonds ended up 0.12 point at 101.52, after rising as much as 0.68 point.

The most liquid 3-year Korean treasury bond yield rose by 10.7 basis points to 4.323 per cent, while the benchmark 10-year yield inched down by 0.4 basis point to 4.227 per cent. REUTERS