Seoul: Shares rebound from 19-month low on institutional boost

SOUTH Korean shares rebounded on Tuesday (Jun 21) to close higher, mostly led by institutional investors' dip-buying after a steep drop to a 19-month low in the previous session. The Korean won weakened slightly, while the benchmark bond yield inched down.

The benchmark Kospi ended up 17.9 points or 0.75 per cent at 2,408.93, after touching its lowest since early November 2020 on Monday.

Institutional buying led the rise, which was a technical rebound at best with no meaningful change in macroeconomic conditions, said Bookook Securities' analyst Lee Won.

Among key economic data points, South Korea's exports for the first 20 days of June shrank 3.4 per cent on year, while imports increased 21.1 per cent, bringing the trade balance to a US$7.64 billion deficit, customs agency data showed on Tuesday.

The Bank of Korea, meanwhile, expects inflation to be higher than its earlier projection and said it would closely assess debt repayment burdens to determine whether a half-percentage point rate hike in July was appropriate.

Among heavyweights, technology giant Samsung Electronics fell 0.34 per cent but peer SK Hynix rose 0.74 per cent, while battery maker LG Energy Solution added 0.36 per cent.

Foreigners were net sellers of 319.5 billion won (S$342.7 million) worth of shares on the main board, while institutional investors net bought 541.5 billion won.

The won was quoted at 1,293.6 per dollar on the onshore settlement platform, down 0.09 per cent.

In offshore trading, the won was quoted down 0.2 per cent, while in non-deliverable forward trading its 1-month contract was quoted at 1,292.3.

In money and debt markets, June futures on 3-year treasury bonds fell 0.04 point to 103.76.

The most-liquid 3-year Korean treasury bond yield fell by 3.2 basis points to 3.663 per cent, while the benchmark 10-year yield fell by 0.4 basis point to 3.773 per cent. REUTERS



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