Seoul: Stocks end at record high on strong foreign buying

[SEOUL] South Korean shares closed at an all-time high on Tuesday, as a weaker dollar spurred foreign buying ahead of earnings from carmakers and tech firms. Both the won and the benchmark bond yield rose.

The benchmark Kospi ended up 21.86 points or 0.68 per cent at 3,220.70, a record closing high. The index also extended its winning streak to seventh session.

Among the heavyweights, chip giants Samsung Electronics and SK Hynix rose 0.72 per cent and 0.36 per cent, respectively, while battery maker LG Chem and internet giant Naver added 1.36 per cent and 0.26 per cent each.

Foreigners were net buyers of 327.9 billion won (S$391 million) worth of shares on the main board.

"Foreign investors snapped up (Kospi shares) on weak dollar ... The sentiment around corporate earnings is optimistic, but there is a pressure over the record-high level (of Kospi)," said Choi Yoo-june, an analyst at Shinhan Investment.

The won was quoted at 1,112.3 per dollar on the onshore settlement platform, up 0.44 per cent.

In offshore trading, the won was quoted at 1,112.0 per dollar, up 0.3 per cent, while in non-deliverable forward trading its one-month contract was quoted at 1,111.6.

The trading volume was 1,278.69 million shares. Of the total traded issues of 908, the number of advancing shares was 664.

In money and debt markets, June futures on three-year treasury bonds fell 0.01 point to 110.90.

The most liquid three-year Korean treasury bond yield rose by 0.5 basis point to 1.134 per cent, while the benchmark 10-year yield rose by 1.8 basis points to 1.999 per cent.

REUTERS