Seoul: Shares snap four-day rally on US inflation caution
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SOUTH Korean shares fell on Thursday (Nov 10), ending their four-session rally, on caution ahead of US inflation data. The Korean won weakened, while the benchmark bond yield fell.
The benchmark Kospi fell 22.18 points or 0.91 per cent to close at 2,402.23. The index snapped a four-session rising streak that had brought it to a near two-month high.
“The market fell as foreigners turned net sellers amid caution over the US inflation data,” said Daishin Securities’ analyst Lee Kyoung-min, who attributed the recent rally to a temporary change in liquidity conditions and the won currency’s reversal of excessive losses.
Consumer inflation in the US is expected to have slowed in October, with its annual growth rate at 8 per cent, according to a Reuters survey, after the 8.2 per cent rise in September.
Among heavyweights, technology giant Samsung Electronics dropped 2.58 per cent and peer SK Hynix inched down by 0.11 per cent, but battery maker LG Energy Solution advanced 1 per cent.
Clean energy shares rose, with CS Wind and Hyundai Energy Solution up 1.82 per cent and 0.88 per cent, respectively, on Democrats’ better-than-expected performance in US midterm elections.
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Less than a third advanced among 932 traded shares.
Foreigners were net sellers of shares worth 115.6 billion won (S$117.3 million) on the main board, after eight straight buying sessions.
The won was last quoted at 1,377.5 per dollar on the onshore settlement platform, 0.92 per cent lower than its previous close.
The currency posted its first fall in five sessions and biggest in a month, after touching the highest level since early September a day before.
In money and debt markets, December futures on three-year treasury bonds rose 0.25 point to 102.60.
The most liquid three-year Korean treasury bond yield fell by 3.5 basis points to 4.04 per cent, while the benchmark 10-year yield fell by 7.9 basis points to 4.089 per cent. REUTERS
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