Seoul: Shares post biggest weekly gain in nearly two years
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SOUTH Korean shares closed slightly lower on Friday (Oct 7), on caution over US employment data, but the benchmark index still posted its biggest weekly gain in nearly two years. The Korean won weakened, while the benchmark bond yield rose.
The Kospi ended down 5.02 points or 0.22 per cent at 2,232.84, after three straight sessions of gains. For the week, it added 3.59 per cent – the first weekly gain in eight and the biggest since early February 2021.
Data showed on Friday the country’s current account swung to the red by the biggest margin in more than two years in August.
South Korean President Yoon Suk-yeol said the government would take steps to spur capital inflows and ensure there were enough dollars available in the local currency market.
Looking ahead, a Reuters poll shows the Bank of Korea could raise rates by another half-point next week to support a weakening won and dull its effect on inflation.
“Investors were divided on how US employment data would come in, and the issue around Britain was also still uncertain,” said Choi Yoo-june, an analyst at Shinhan Investment and Securities.
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Samsung Electronics ended down 0.18 per cent, after falling as much as 1.02 per cent, as it flagged a worse-than-expected 32 per cent drop in quarterly operating earnings. Peer SK Hynix gained 1.45 per cent.
Kakao dropped 7.12 per cent, with its affiliates Kakaobank and Kakaopay slumping 9.38 per cent and 14.41 per cent, respectively. Peer Naver lost 4.19 per cent.
Foreigners were net buyers of shares worth 100.5 billion won (S$101.6 million), extending the buying streak to a sixth session.
The won ended 0.71 per cent lower. The currency still gained 1.26 per cent for the week, the first in nine and the biggest since late May.
The most liquid three-year Korean treasury bond yield jumped by 14.1 basis points to 4.281 per cent, while the benchmark 10-year yield rose by 11.2 basis points to 4.214 per cent. REUTERS
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