Seoul: Stocks end 5-day rout as LG Energy IPO volatility eases

[SEOUL] South Korean shares ended higher on Thursday (Jan 20), helped by bargain hunting after a 5-day selling spree, though gains were capped ahead of US Federal Reserve meeting and earnings reports. The Korean won was nearly unchanged, while the benchmark bond yield rose.

The benchmark Kospi closed up 20.40 points, or 0.72 per cent, at 2,862.68, marking its first gain in 6 sessions.

Among the heavyweights, Samsung Electronics rose 0.26 per cent, while LG Chem and Samsung SDI added 6.58 per cent and 4.08 per cent, respectively.

Market volatility related to LG Energy Solution's US$10.8 billion initial public offering (IPO) eased after the public subscription for retail investors ended on Wednesday, with investors bidding for a record 114 trillion won (S$129 billion) worth of shares. The company is scheduled to make its debut on Jan 27.

Eyes are on the US Federal Reserve January meeting next week as traders see the central bank moving more quickly to hike interest rates to combat inflation.

On the main board, foreigners sold net 273.9 billion won worth of shares.

The won ended at 1,192.4 per dollar on the onshore settlement platform, 0.06 per cent lower than its previous close.

In offshore trading, the won was quoted at 1,191.8 per dollar, down 0.3 per cent from the previous day, while in non-deliverable forward trading its 1-month contract was quoted at 1,192.2.

In money and debt markets, March futures on 3-year treasury bonds fell 0.18 point to 108.10.

The most liquid 3-year Korean treasury bond yield rose by 4.4 basis points to 2.117 per cent, while the benchmark 10-year yield rose by 2.1 basis points to 2.557 per cent.

REUTERS