Seoul: Shares post biggest weekly gain in 5 months on chipmaker boost

SOUTH Korean shares rose on Friday (Jul 8) to close the week with biggest gain in 5 months, supported by chipmakers and sustained buying from overseas. The won was flat, while the benchmark bond yield climbed.

The benchmark Kospi ended up 16.34 points or 0.7 per cent at 2,350.61. The index ended the week 1.96 per cent higher, the biggest gain since early February.

The local market continued its rebounding trend that began after Samsung Electronics released its earnings report, said Eugene Investment and Securities’ analyst Huh Jae-hwan, though some gains were shed following news of the shooting of former Japanese Prime Minister Shinzo Abe.

Abe, Japan’s longest-serving prime minister, was shot on Friday while campaigning for a parliamentary election, weakening risk appetite across global financial markets.

Among the heavyweights, technology giant Samsung Electronics and peer SK Hynix rose 0.86 per cent and 0.96 per cent, respectively, extending gains on a relief from Samsung’s second-quarter earnings released a day before.

Battery maker LG Energy Solution gained 3.88 per cent, while its parent LG Chem advanced 3.05 per cent after the chemicals maker issued US$300 million worth of global green bonds.

Of the total traded issues of 927 on the benchmark Kospi, the number of advancing shares was 588.

Foreigners were net buyers of 247.8 billion won (S$267.1 million) worth of shares on the main board.

The won was last quoted 0.05 per cent lower at 1,300.4 per dollar on the onshore settlement platform. The currency weakened 0.25 per cent for the week.

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In offshore trading, the won was quoted down 0.2 per cent at 1,300.3 per dollar, while in non-deliverable forward trading its 1-month contract was quoted at 1,299.4.

In money and debt markets, September futures on 3-year treasury bonds fell 0.09 point to 104.42 in late afternoon trade.

The most liquid 3-year Korean treasury bond yield rose by 6.6 basis points to 3.315 per cent, while the benchmark 10-year yield climbed 7.8 basis points to 3.369 per cent. REUTERS