The Business Times

Seoul: Shares recover after 3 sessions of losses

Published Tue, Sep 6, 2022 · 04:15 PM

South Korean shares rebounded on Tuesday (Sep 6) after falling for the last 3 sessions, but gains were capped by the dollar’s strength and worries over Europe’s energy struggle. The won ended flat, while the benchmark bond yield rose.

The benchmark Kospi ended up 6.34 points or 0.26 per cent at 2,410.02, after the benchmark ended at its lowest since Jul 22.

The Chinese yuan’s gains after a foreign exchange ratio cut helped support the local forex and also stock markets, but they lost some of their early gains as the yuan and the dollar reversed their courses, said Lee Kyoung-min, analyst at Daishin Securities.

China’s central bank said on Monday it will cut the amount of foreign exchange reserves that financial institutions must hold.

Among heavyweights, technology giant Samsung Electronics was unchanged, and battery maker LG Energy Solution rose 0.1 per cent, while SK Hynix gained 0.77 per cent, after the chipmaker revealed a plan to build a new chip plant.

Foreigners were net sellers of shares worth 79.2 billion won (S$80.9 million) on the main board, extending their sell-off to a fourth straight session.

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The won hit its weakest level since early April 2009 at 1,377 per dollar, before recovering most losses to end the onshore trade only 0.02 per cent lower at 1,371.1.

The foreign exchange authorities were again suspected of selling dollars to curb the won’s fall near the end of the session, as it had been a day before.

In offshore trading, the won was quoted down 0.4 per cent at 1,374.2 per dollar, while in non-deliverable forward trading its 1-month contract was quoted at 1,373.6.

In money and debt markets, September futures on 3-year treasury bonds fell 0.16 point to 103.65 in late afternoon trade.

The most liquid 3-year Korean treasury bond yield rose by 7.1 basis points to 3.687 per cent, while the benchmark 10-year yield rose by 3.2 basis points to 3.703 per cent. REUTERS

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