Seoul: Shares snap three-session gaining streak as dollar firms

SOUTH Korean shares ended lower on Wednesday (Oct 19), reversing course due to a strengthening dollar. The Korean won weakened, while the benchmark bond yield rose.

The benchmark Kospi ended down 12.51 points or 0.56 per cent at 2,237.44, after rising as much as 0.75 per cent.

“The market erased gains, mostly tracking a rise in the dollar and US treasury yields, while the Chinese market’s weakness also weighed on the local sentiment,” said Mirae Asset Securities’ analyst Seo Sang-young.

Among heavyweights, technology giant Samsung Electronics fell 1.24 per cent and peer SK Hynix lost 3.03 per cent, but battery maker LG Energy Solution advanced 1.74 per cent.

The country’s dominant chat application operator Kakao rose 0.81 per cent, with affiliates Kakaobank and Kakaopay up 1.16 per cent and 0.54 per cent, respectively. The tech firm’s co-chief executive stepped down on Wednesday, taking responsibility for a nationwide service outage.

Hyundai Motor ended unchanged and Kia fell slightly by 0.14 per cent due to a combined 2.9 trillion won (S$2.9 billion) provision in their third-quarter results from engine recalls years ago.

Foreigners were net buyers of shares worth 150 billion won on the main board, extending their buying streak to a 13th session – the longest since late November 2020.

The won ended 0.25 per cent lower at 1,426.2 per dollar on the onshore settlement platform, or 0.92 per cent lower than the session high.

In money and debt markets, December futures on three-year treasury bonds fell 0.31 point to 101.51.

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Seoul: Shares end at near four-week high on Britain relief

The most liquid three-year Korean treasury bond yield rose by 8.7 basis points to 4.323 per cent, while the benchmark 10-year yield jumped 10.4 basis points to 4.378 per cent. REUTERS