Seoul: Stocks close higher on expectations for Ukraine-Russia talks

[SEOUL] South Korean shares rose on Monday (Feb 28), paring early losses on reports that Ukrainian authorities will hold talks with Russian counterparts. The Korean won weakened, while the benchmark bond yield fell.

The benchmark Kospi rose 22.42 points, or 0.84 per cent, to 2,699.18.

Among the heavyweights, technology giant Samsung Electronics rose 0.28 per cent and peer SK Hynix rose 0.41 per cent, while LG Chem rose 1.99 per cent and Naver rose 1.11 per cent.

Optimism over talks between Russia and Ukraine pushed up shares after concerns over banning Russia from the Swift financial system shook markets, said Na Jeong-hwan, an analyst at Cape Investment & Securities.

South Korea will tighten export controls against Russia by banning exports of strategic items and join Western countries' moves to block some Russian banks from the Swift international payments system, Seoul's foreign ministry said on Monday.

Foreigners were net buyers of 89 billion won (S$100.5 million) worth of shares on the main board.

The won was quoted at 1,202.3 per dollar on the onshore settlement platform, 0.06 per cent lower than its previous close at 1,201.6.

In offshore trading, the won was quoted at 1,203.9 per dollar, down 0.5 per cent from the previous day, while in non-deliverable forward trading its 1-month contract was quoted at 1,203.9.

The Kospi has fallen 9.35 per cent so far this year, losing 8.6 per cent in the previous 30 trading sessions.

The trading volume during the session in the Kospi index was 603.97 million shares. Of the total traded 929 issues, 629 advanced.

The won has lost 1.1 per cent against the dollar so far this year.

In money and debt markets, March futures on 3-year treasury bonds rose 0.07 point to 108.07.

The most liquid 3-year Korean treasury bond yield fell by 1.7 basis points to 2.227 per cent, while the benchmark 10-year yield fell by 1 basis point to 2.661 per cent. REUTERS