Seoul: Stocks end at 2-week high with earnings in focus

SOUTH Korean shares rose to their highest level in 2 weeks on Thursday (Apr 21), on strong buying from institutional investors as earnings season kicks off. The Korean won weakened, while the benchmark bond yield rose.

The benchmark Kospi closed up 9.52 points, or 0.35 per cent, to 2,728.21, marking the highest close since Apr 6.

Investors are awaiting quarterly earnings reports from major companies over the coming days, with technology giant Samsung Electronics and carmaker Hyundai Motor set to report next week.

Among the heavyweights, Samsung closed 0.45 per cent higher and peer SK Hynix gained 0.44 per cent after rising over 1 per cent each in early trade. Battery maker LG Energy Solution also added 0.11 per cent.

Foreigners were net sellers of 59.5 billion won (S$65.5 million) worth of shares on the main board, while institutional investors net bought 637.23 billion won.

Despite uncertainty from the Russia-Ukraine war and a slump in Chinese stocks, the local stock market continued its robust trend with strong buying from institutional investors, said Bookook Securities’ analyst Lee Won.

South Korea’s exports for the first 20 days of April rose 16.9 per cent year on year, while imports jumped 25.5 per cent, bringing the trade balance to a US$5.2 billion deficit, customs agency data showed on Thursday.

South Korea’s new central bank governor Rhee Chang-yong said on Thursday that economic growth is expected to weaken further from the Bank of Korea’s earlier projection, emphasising that monetary policy will aim to balance growth and inflation.

The won closed trading at 1,239 per dollar on the onshore settlement platform, 0.23 per cent lower than its previous close at 1,236.1.

In offshore trading, the won was quoted at 1,237.8 per dollar, down 0.3 per cent from the previous day, while in non-deliverable forward trading its 1-month contract was quoted at 1,237.6.

In money and debt markets, June futures on 3-year treasury bonds rose 0.04 point to 105.37 in late afternoon trade.

The most liquid 3-year Korean treasury bond yield fell by 1.9 basis points to 2.942 per cent, while the benchmark 10-year yield rose by 0.3 basis point to 3.318 per cent. REUTERS