Seoul: Shares post best day in three weeks as chipmakers rally
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SOUTH Korean shares rose more than 2 per cent on Tuesday (Oct 4), tracking an improved risk appetite in global markets, with heavyweight chipmakers rallying on the prospect that potential production cuts will help offset weak demand.
The won strengthened, while the benchmark bond yield fell.
The benchmark Kospi ended up 53.89 points or 2.5 per cent at 2,209.38, marking its biggest intraday gain since Sep 13. In the previous session, the index closed at its lowest level since July 2020.
“The local market belatedly, and in one day, tracked Asian peer’s rebounding trend,” said Seo Jung-hun, an analyst at Samsung Securities. The market was closed on Monday for a public holiday.
Technology giant Samsung Electronics and peer SK Hynix rose 3.95 per cent and 3.73 per cent, respectively, leading the gains in the index. Battery maker LG Energy Solution gained 4.22 per cent.
Investor sentiment around the chip industry improved following decisions to cut investment and production by Micron Technology in the US and Japan’s Kioxia.
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Refiner SK Innovation jumped 7.32 per cent, tracking gains in oil prices on expectations of Opec+ supply cuts.
Naver saw its worst day since July 2015 with an 8.79 per cent slump, after the technology firm agreed to a US$1.6 billion deal to buy a US secondhand fashion platform, as a strategic investment to enter the US e-commerce market. Peer Kakao lost 2.1 per cent.
Foreigners were net buyers of shares worth 218 billion won (S$218.5 million) on the main board, extending their buying streak to a third straight session.
The won was last quoted at 1,426.5 per dollar on the onshore settlement platform, 0.26 per cent higher than its previous close. In offshore trading, the won was quoted up 0.5 per cent at 1,426.2.
In money and debt markets, December futures on three-year treasury bonds rose 0.46 point to 102.34.
The most liquid three-year Korean treasury bond yield dropped 15.1 basis points to 4.063 per cent, while the benchmark 10-year yield fell by 10.6 basis points to 4.003 per cent. REUTERS
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