Seoul: Stocks end four-day rally as tech heavyweights slide

[SEOUL] South Korean shares snapped a four-session rally on Thursday, dragged down by a slump in major tech heavyweights.

The won weakened, while the benchmark bond yield rose.

The benchmark Kospi closed down 23.31 points or 0.74 per cent at 3,130.09, after gaining 0.15 per cent on Wednesday.

Leading declines on the benchmark were chip giants Samsung Electronics and SK Hynix, falling 1.17 per cent and 3.26 per cent, respectively, while platform company Kakao and battery maker Samsung SDI also dropped 0.82 per cent and 3.33 per cent, respectively.

Shares in SK Innovation ended down 4.44 per cent after the company said its shareholders had approved a proposal to separate its battery business into a new company.

Denting the sentiment across the region was fears over China Evergrande Group's financial woes, which pulled down Hong Kong equities to their lowest level this year.

Investors now await the US Federal Reserve's upcoming policy meeting for more clues on tapering of its bond-buying programmes.

Foreigners were net buyers of 23.9 billion won (S$27.4 million) worth of shares on the main board.

The won ended at 1,171.8 per dollar on the onshore settlement platform, 0.11 per cent lower than its previous close at 1,170.5.

In offshore trading, the won was quoted at 1,171.6 per dollar, down 0.5 per cent from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,172.1.

In money and debt markets, September futures on three-year treasury bonds fell 0.06 point to 110.17, while the three-month Certificate of Deposit rate was quoted at 1.01 per cent in late afternoon trade.

The most liquid three-year Korean treasury bond yield rose by 2 basis points to 1.512 per cent, while the benchmark 10-year yield rose by 2 basis points to 2.044 per cent.

REUTERS