Seoul: Shares rise nearly 2% as chipmakers rally on Samsung results

SOUTH Korean shares rose nearly 2 per cent on Thursday (Jul 7), boosted by chipmakers, as investors cheered Samsung Electronics’ second-quarter results. The Korean won strengthened, while the benchmark bond yield was flat.

The benchmark Kospi ended up 42.26 points or 1.84 per cent at 2,334.27, after touching the lowest level since late October 2020 in the previous session.

Samsung Electronics rose 3.19 per cent, the biggest percentage gain since late April, after the technology giant turned in its best second-quarter profit in 4 years, though slightly short of market expectations, on strong sales of memory chips to server customers.

Investors took a relief that the Samsung’s earnings showed relatively stronger demand than that the market had anticipated, said Daishin Securities’ analyst Lee Kyoung-min.

Peer SK Hynix rose 1.95 per cent. Other heavyweights battery maker LG Energy Solution rose 0.81 per cent and automaker Hyundai Motor gained 1.45 per cent.

Covid-19 vaccine maker SK Bioscience jumped 13.99 per cent to the highest since late April amid signs of the country’s daily infections rebounding.

Of the total traded issues of 928 on the benchmark Kospi, the number of advancing shares was 726.

Foreigners were net buyers of 144.1 billion won (S$155.2 million) worth of shares on the main board.

The won was last quoted at 1,299.8 per dollar on the onshore settlement platform, 0.5 per cent higher than its previous close.

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In offshore trading, the won was quoted up 0.4 per cent at 1,299.6 per dollar, while in non-deliverable forward trading its 1-month contract was quoted at 1,298.9.

In money and debt markets, September futures on 3-year treasury bonds were little changed in late afternoon trade.

The most liquid 3-year Korean treasury bond yield rose by 1.6 basis points to 3.239 per cent, while the benchmark 10-year yield rose by 0.7 basis point to 3.289 per cent. REUTERS