Seoul: Stocks end at near 1-month low as biopharma shares slump

[SEOUL] South Korean shares fell to a near 1-month closing low on Monday (Nov 8), driven by losses from biopharmaceutical firms and as investors stayed cautious ahead of inflation data from the United States and China later this week. The won edged higher, while the benchmark bond yield fell.

The benchmark Kospi closed down 9.07 points or 0.31 per cent at 2,960.20, recouping earlier losses of as much as 1.29 per cent.

Leading the declines were biopharmaceutical firms, with Samsung Biologics, SK Bioscience and Celltrion falling 4.75 per cent, 14.20 per cent and 5.74 per cent, respectively, following positive data from Pfizer on its experimental pill against Covid-19.

The sub-index for medical supplies also dropped 5.66 per cent.

Chip heavyweights Samsung Electronics and SK Hynix, however, rose 0.57 per cent and 0.47 per cent, respectively, capping the declines.

Foreigners were net sellers of 124.3 billion won (S$141.8 million) worth of shares on the main board.

"(Kospi) recovered from excessive declines earlier in the session that were driven by sharp losses from biopharmaceutical shares," said Na Jeong-hwan, an analyst at Cape Investment & Securities.

"Traders' movements after the release of (US) inflation data will be closely watched amid sharp falls in US treasury yields," he added.

The won ended at 1,183.1 per dollar on the onshore settlement platform, 0.18 per cent higher than its previous close.

In offshore trading, the won was quoted at 1,183.4 per dollar, down 0.2 per cent from the previous day, while in non-deliverable forward trading its 1-month contract was quoted at 1,183.5.

In money and debt markets, December futures on 3-year treasury bonds rose 0.11 point to 108.61.

The most liquid 3-year Korean treasury bond yield fell by 2.6 basis points to 1.918 per cent, while the benchmark 10-year yield fell by 1.5 basis points to 2.335 per cent.

REUTERS