Seoul: Shares as tech stocks roar back with foreign buying

SOUTH Korean shares closed higher on Monday (Jul 25) as foreign investors found blue-chip shares valuations attractive after their recent declines. The Korean won weakened, while the benchmark bond yield fell.

The benchmark Kospi ended up 10.55 points or 0.44 per cent at 2,403.69.

As shares in South Korea and Taiwan both rose, there seems to be some buying-at-dip ahead of earnings season coming soon, said Park Gwang-nam, an analyst at Mirae Asset Securities.

Among heavyweights, platform operator Kakao gained 1.25 per cent, Hyundai Motor was up 2.62 per cent, while battery maker LG Energy Solution rose 2.36 per cent.

Foreigners were net buyers of 92 billion won (S$97.1 million) worth of shares on the main board.

The won was quoted at 1,313.7 per dollar on the onshore settlement platform, 0.05 per cent lower than its previous close at 1,313.

In offshore trading, the won was quoted at 1,312.6 per dollar, down 0.2 per cent from the previous day, while in non-deliverable forward trading its 1-month contract was quoted at 1,311.5.

The Kospi has fallen 19.28 per cent so far this year, but lost 7.8 per cent in the previous 30 trading sessions.

The trading volume during the session in the Kospi index was 316.23 million shares. Of the total traded issues of 927, the number of advancing shares was 427.

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The won has lost 9.5 per cent against the dollar so far this year.

In money and debt markets, September futures on 3-year treasury bonds rose 0.13 point to 105.04.

The most liquid 3-year Korean treasury bond yield fell by 5.5 basis points to 3.153 per cent, while the benchmark 10-year yield fell by 8.8 basis points to 3.213 per cent. REUTERS