Seoul: Shares slip as chipmaker rally cools

SOUTH Korean shares closed marginally lower on Tuesday (Jul 19) as chipmakers ended their 2-session rally. The Korean won strengthened, while the benchmark bond yield rose.

The benchmark Kospi ended down 4.28 points or 0.18 per cent at 2,370.97, after hitting a near 3-week high in the previous session.

Among the heavyweights, technology giant Samsung Electronics fell 1.62 per cent and peer SK Hynix lost 0.99 per cent, after surging in the previous 2 sessions to their highest since mid-June.

On Wall Street overnight, Apple shares fell more than 2 per cent on a report that said the company plans to slow hiring and spending growth next year, fanning worries about weaker earnings for other tech shares as well.

It raised concerns of economic recession and weak earnings ahead of major tech companies’ results, but it is not yet an issue that should significantly damage investor sentiment, said Daishin Securities’ analyst Lee Kyoung-min.

The US Secretary of Treasury Janet Yellen is on a visit to Seoul where she will meet the South Korean president, finance minister, central bank chief and the chief executive of LG Chem.

Foreigners were net buyers of 38.7 billion won (S$41.1 million) worth of shares on the main board.

The won was last quoted at 1,313.4 per dollar on the onshore settlement platform, 0.3 per cent higher than its previous close.

In offshore trading, the won was quoted up 0.4 per cent at 1,313.6 per dollar, while in non-deliverable forward trading its 1-month contract was quoted at 1,312.6.

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In money and debt markets, September futures on 3-year treasury bonds rose 0.01 point to 104.85 in late afternoon trade.

The most liquid 3-year Korean treasury bond yield rose by 1 basis point to 3.218 per cent, while the benchmark 10-year yield rose by 2.5 basis points to 3.289 per cent. REUTERS