Seoul: Stocks end higher on Kakao boost, recovery hopes

[SEOUL] South Korean shares rose on Thursday, led by a surge in Kakao following its stock split, and as foreigners raised their positions on hopes for a swifter economic recovery. The won inched down, while the benchmark bond yield rose.

The benchmark Kospi closed up 11.95 points or 0.38 per cent to 3,194.33.

Among heavyweights, chip giants Samsung Electronics and SK Hynix rose 0.12 per cent and 0.36 per cent each, while battery maker LG Chem fell 0.67 per cent.

Kakao Corp surged as much as 18.7 per cent to a record high as it returned to trading after conducting a 5-for-1 stock split.

LG Electronics jumped 4.02 per cent, extending gains on reports that its JV with Magna International was close to signing contracts with Apple to build electric vehicles.

Foreigners were net buyers of 265.8 billion won (S$318.2 million) worth of shares on the main board.

The latest Beige Book showed that the US recovery accelerated to a moderate pace from late February to early April buoyed by consumption.

Back home, the Bank of Korea kept interest rates steady at record lows and said it was too early to discuss a change in the direction of monetary policy, even as it sounded more upbeat on growth and expected inflation to accelerate.

The won ended at 1,117.6 per dollar on the onshore settlement platform, 0.09 per cent lower than its previous close at 1,116.6.

In offshore trading, the won was quoted at 1,117.1 per dollar, down 0.1 per cent from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,116.9.

The most liquid three-year Korean treasury bond yield rose by 4.7 basis points to 1.149 per cent, while the benchmark 10-year yield rose by 3.8 basis points to 2.028 per cent.

REUTERS