Seoul: Shares recover after 4 sessions on automakers' boost

SOUTH Korean shares ended slightly higher on Tuesday (Sep 27), led by automakers’ stocks, as the US dollar’s gaining momentum eased and investors scooped up oversold stocks. The won jumped, while the benchmark bond yield dropped.

The benchmark Kospi ended up 2.92 points or 0.13 per cent at 2,223.86, snapping a 4-session losing streak that brought the index to its lowest since July 2020.

The index went through a volatile session, falling as much as 1.04 per cent before sharply recovering losses near the close, also affected by involuntary sell-off of retail investors’ leveraged holdings.

“Still, the market could hold up on dip-buying and a rebound in US stock futures,” said Seo Sang-young, an analyst at Mirae Asset Securities.

Among heavyweights, technology giant Samsung Electronics rose 0.56 per cent, but peer SK Hynix fell 0.61 per cent and battery maker LG Energy Solution lost 0.56 per cent.

Automakers Hyundai Motor and Kia gained 1.92 per cent and 2.27 per cent respectively, leading the gains. They were among 380 advancing shares out of 931 total traded issues.

US Vice-President told South Korea’s prime minister on Tuesday that Washington will work to address Seoul’s concerns over recently enacted electric vehicle subsidies that could disadvantage the country’s automakers.

Daewoo Shipbuilding and Marine Engineering slumped 18.24 per cent, erasing all of the 13.4 per cent gain on Monday.

The shipbuilder signed a tentative agreement for Hanwha Group to invest 2 trillion won (S$2 billion) in return for a 49.3 per cent stake and management rights in the shipbuilder.

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Foreigners were net sellers of shares worth 177.9 billion won.

The won was last quoted at 1,421.5 per dollar on the onshore settlement platform, 0.69 per cent higher than its previous close.

In money and debt markets, December futures on 3-year treasury bonds jumped 0.76 basis point to 101.51.

The most liquid 3-year Korean treasury bond yield dropped by 17.6 basis points to 4.287 per cent, while the benchmark 10-year yield fell by 9.6 basis points to 4.206 per cent. REUTERS