Seoul: Shares rise on Samsung-Verizon contract, fewer coronavirus cases

[SEOUL] South Korean shares rose on Monday after chip giant Samsung Electronics won a US$6.64 billion order from Verizon and as the country reported fewer domestic coronavirus infections. The won and the benchmark bond yield both strengthened.

The benchmark Kospi closed up 15.97 points or 0.7 per cent at 2,384.22. The index has risen four times in the past five sessions.

Samsung Electronics jumped as much as 3.1 per cent after saying it would provide wireless communication solutions to US-based Verizon, a major win for the South Korean tech giant in the next-generation 5G network market.

South Korea reported 119 fresh cases, the smallest daily rise in three weeks, as of Sunday midnight, but officials are weighing whether to extend social distancing curbs ahead of one of the country's biggest holidays later this month.

Economic indicators such as US jobs data and China's exports data are showing positive signs and Samsung Electronics'contract win is also helping sentiment, said DS Investment & Securities' analyst Na Jeong Hwan.

Foreigners were net sellers of 246.9 billion won (S$0.28 billion) worth of shares on the main board.

The won ended trading at 1,188.3 per US dollar on the onshore settlement platform, 0.1 per cent higher than its previous close.

In offshore trading, the won was quoted at 1,188.1 per US dollar, down 0.1 per cent from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,188.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.5 per cent.

In money and debt markets, September futures on three-year treasury bonds fell 0.07 point to 111.70.

The most liquid three-year Korean treasury bond yield rose by 3.6 basis points to 0.965 per cent. The benchmark 10-year yield rose by 4.3 basis points to 1.567 per cent.

REUTERS