Seoul: Stocks end 1% lower on economic slowdown worries

SOUTH Korean shares fell over 1 per cent on Thursday (May 19), tracking the overnight plunge in Wall Street, as investors fretted over global economic slowdown and inflationary pressures. The Korean won weakened, while the benchmark bond yield fell.

The benchmark Kospi closed down 33.64 points, or 1.28 per cent, at 2,592.34, after 2 sessions of gains.

Concerns about weaker corporate earnings and economic recession due to inflation shocks re-emerged after US retail companies’ earnings results, said Daishin Securities’ analyst Lee Kyoung-min.

In the US, Target’s quarterly profit halved and it warned on Wednesday of a bigger margin hit this year due to rising fuel and freight costs.

China’s Covid-hit financial hub will start to allow more businesses in zero-Covid areas to resume normal operations, alleviating some concerns over supply chain disruptions.

Among the heavyweights, technology giant Samsung Electronics fell 0.88 per cent and peer SK Hynix dropped 2.2 per cent, while battery maker LG Energy Solution rose 1.34 per cent.

Foreigners were net sellers of 96.9 billion won (S$105.3 million) worth of shares on the main board.

Of the total traded issues of 927, 123 shares rose.

The won was last quoted at 1,277.7 per dollar on the onshore settlement platform, 0.87 per cent lower than its previous close at 1,266.6, snapping a 4-day gaining streak.

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In offshore trading, the won was quoted at 1,277.5 per dollar, down 0.2 per cent from the previous day, while in non-deliverable forward trading its 1-month contract was quoted at 1,277.4.

In money and debt markets, June futures on 3-year treasury bonds rose 0.04 point to 105.31 in late afternoon trade.

The most liquid 3-year Korean treasury bond yield fell 2.6 basis points to 3.046 per cent, while the benchmark 10-year yield dipped 0.9 basis point to 3.311 per cent. REUTERS