Seoul: Shares on four-day rally as stronger won lifts blue chips

SOUTH Korean shares rose on Wednesday (Nov 9) as a firmer won and expectations about a Republican win in US midterm elections helped extend the Kospi’s gains for the fourth day in a row. The South Korean won strengthened, while the benchmark bond yield fell.

The benchmark Kospi rose 25.37 points, or 1.06 per cent, to close at 2,424.41.

Technology giant Samsung Electronics rose 0.32 per cent and peer SK Hynix gained 1.71 per cent, while battery maker LG Energy Solution advanced 1.87 per cent.

The won is stronger and expectation of a Republican win in the US midterms added to hopes that the Federal Reserve’s aggressive policy tightening could be eased, said Choi Yoo-june, an analyst at Shinhan Securities.

The trading volume was 674.60 million shares. Of the total 932 traded issues, the number of advancing shares was 573.

Foreigners were net buyers of shares, worth 412.9 billion won (S$423.8 million), on the mainboard.

The won was quoted at 1,364.8 per dollar on the onshore settlement platform, 1.47 per cent higher than its previous close at 1,384.9.

In offshore trading, the won was quoted at 1,365.3 per dollar, up 0.7 per cent from the previous day, while in non-deliverable forward trading, its one-month contract was quoted at 1,364.5.

The Kospi has fallen 18.58 per cent so far this year, but has gained 4.8 per cent in the previous 30 trading sessions.

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The won has lost 12.9 per cent against the dollar so far this year.

In money and debt markets, December futures on three-year treasury bonds rose 0.24 point to 102.40.

The most liquid three-year South Korean treasury bond yield fell 8.7 basis points to 4.075 per cent, while the benchmark 10-year yield fell 7.8 basis points to 4.164 per cent. REUTERS