Seoul: Shares snap 5-session losing streak on robust foreign inflows

SOUTH Korean shares rose on Wednesday (Aug 24) after 5 straight sessions of losses, buoyed by foreign buying as the dollar eased. The Korean won strengthened, while the benchmark bond yield rose.

The benchmark Kospi ended up 12.11 points, or 0.5 per cent, at 2,447.45. The index had hit its lowest since Jul 28 on Tuesday.

Investors were cautious ahead of inflation data and US Federal Reserve’s policy cues from the central bankers’ symposium at Jackson Hole, said Park Kwang-nam, analyst at Mirae Asset Securities.

On the domestic front, focus was on the Bank of Korea’s monetary policy meeting on Thursday, with additional 25-basis-point rate hike widely expected.

South Korea President Yoon Suk-yeol said volatility was increasing in financial and foreign exchange markets and that the government would closely monitor to prevent any crisis.

Among heavyweights, technology giant Samsung Electronics inched down 0.17 per cent and peer SK Hynix lost 0.43 per cent, but battery maker LG Energy Solution rose 1.35 per cent.

Of the total 930 traded issues, 575 shares advanced.

Foreigners were net buyers of shares worth 150.6 billion won (S$156.3 million) on the mainboard, extending their buying streak to a sixth session.

The won was last quoted at 1,342.1 per dollar on the onshore settlement platform, 0.25 per cent higher than its previous close, ending a 6-session losing streak to a more than 13-year low.

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In offshore trading, the won was quoted down 0.3 per cent at 1,343.2 per dollar, while in non-deliverable forward trading its one-month contract was quoted at 1,342.3.

In money and debt markets, September futures on 3-year treasury bonds fell 0.12 point to 104.70 in late afternoon trade.

The most liquid 3-year Korean treasury bond yield rose by 0.9 basis point to 3.299 per cent, while the benchmark 10-year yield rose by 5.5 basis points to 3.426 per cent. REUTERS