The Business Times

Seoul: Shares hit six-week high on foreign inflows, battery boost

Published Tue, Nov 1, 2022 · 03:37 PM

South Korean shares rose on Tuesday (Nov 1) to their highest in nearly six weeks, led by battery manufacturers, as strong foreign inflows offset dismal exports data. The Korean won strengthened, while the benchmark bond yield fell.

The benchmark Kospi rose 41.61 points or 1.81 per cent to end the session at 2,335.22, the highest closing level since Sep 21.

South Korea’s exports in October fell the most in 26 months while a trade deficit persisted for a seventh month, government data showed on Tuesday, although the market’s reaction to the sluggish data was largely muted.

South Korea’s top financial groups agreed with the country’s financial regulator to ensure sufficient liquidity is supplied to the local money and bond markets.

“The stock market’s strength was supported by continued foreign buying and upbeat sectors of batteries and nuclear-related stocks, amid rotational trading of heavyweight stocks,” said Lee Kyoung-min, analyst at Daishin Securities.

Among heavyweights, technology giant Samsung Electronics rose 1.01 per cent and peer SK Hynix gained 1.45 per cent.

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Battery maker LG Energy Solution advanced 6.63 per cent, while its parent LG Chem surged 11.02 per cent. Peers Samsung SDI and SK Innovation rose 3.12 per cent and 5.49 per cent, respectively.

Nuclear-related stocks surged after South Korea signed outline agreements to develop nuclear power in Poland. Doosan Enerbility gained 19.62 per cent, while KEPCO E&C , KEPID and KEPCO PLANT S&E rose 29.91 per cent, 27.97 per cent and 11.76 per cent, respectively.

Foreigners were net buyers of shares worth 492.9 billion won (S$491 million) on the main board.

The won was last quoted at 1,417.2 per dollar on the onshore settlement platform, 0.5 per cent higher than its previous close.

December futures on three-year treasury bonds rose 0.35 point to 102.46.

The most liquid three-year Korean treasury bond yield fell 10.5 basis points to 4.084 per cent, while the benchmark 10-year yield fell by 8.4 basis points to 4.171 per cent. REUTERS

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