Seoul: Shares post biggest fall in over a month as chipmakers drop

SOUTH Korean shares fell by the most in over a month on Thursday (Nov 17), dragged down by heavyweight chipmakers as they tracked the sharp losses in their US peers. The Korean won weakened more than 1 per cent, while the benchmark bond yield fell.

The benchmark KOSPI fell 34.55 points, or 1.39 per cent, to close at 2,442.90. It marked the biggest daily loss since Oct 13.

Chipmakers led the losses. Samsung Electronics fell 2.07 per cent and SK Hynix lost 4.15 per cent, tracking a drop in the US Philadelphia Semiconductor Index, as Micron Technology further cut its capital spending plan.

“Lacking upside factors, the stock market continued its weak performance this week, with foreign selling and the won’s weakness,” said Huh Jae-hwan, an analyst at Eugene Investment and Securities.

South Korean President Yoon Suk-yeol called Saudi Arabia a key economic partner, as Crown Prince Mohammed bin Salman visited Seoul. The Middle Eastern country signed over 20 investment agreements, worth about US$30 billion in total, with South Korean companies.

Among those, Hyundai Rotem jumped 5.45 per cent, Lotte Fine Chemical gained 1.44 per cent, while Samsung C&T ended down 3.61 per cent after rising as much as 2.01 per cent to a more than one-year high.

S-Oil ended down 2.25 per cent, reversing earlier gains of as much as 3.38 per cent. Its largest shareholder Saudi Aramco said it plans a US$7 billion investment at the South Korean affiliate’s factory.

Foreigners were net sellers of shares worth 382 billion won (S$391.4 million) on the main board.

The won ended 1.05 per cent lower at 1,339.1 per US dollar on the onshore settlement platform, posting its worst daily performance since Oct 11.

In money and debt markets, December futures on three-year treasury bonds rose 0.02 points to 103.25.

The most liquid three-year Korean treasury bond yield fell by 0.4 basis points to 3.799 per cent, while the benchmark 10-year yield fell by 3.7 basis points to 3.854 per cent. REUTERS