Seoul: Stocks end higher on strong foreign inflows, post third weekly gains

[SEOUL] South Korean shares ended higher on Friday (Dec 17), as strong buying by foreign investors offset more hawkish-than-expected moves from major central banks, while Omicron coronavirus variant fears also weighed on sentiment.

Both the won and the benchmark bond yield rose.

The benchmark Kospi closed up 11.32 points, or 0.38 per cent, at 3,017.73, extending gains to a third straight day.

It rose 0.25 per cent on a weekly basis, marking the third week of gains.

Among heavyweights, chip giant Samsung Electronics rose 0.26 per cent, while peer SK Hynix fell 1.61 per cent. Platform company Naver slid 0.77 per cent.

The Bank of England surprised markets with a rate hike, while the European Central Bank trimmed its super-sized bond buying program, adopting more hawkish stances than expected.

The country will reinstate stricter social distancing rules from Saturday (Dec 18), limiting private gatherings and working hours of businesses, as it continued to report near record daily virus cases.

The government will prepare a new 4.3 trillion won (S$5 billion) stimulus package to help support small-sized and self-employed businesses hurt by the tougher Covid-19 curbs.

On the main Kospi board, foreigners bought net 509.8 billion won worth of shares.

The won ended at 1,180.9 per dollar on the onshore settlement platform, 0.25 per cent higher than its previous close.

In offshore trading, the won was quoted at 1,182.7 per dollar, up 0.3 per cent from the previous day, while in non-deliverable forward trading its 1-month contract was quoted at 1,182.2.

In money and debt markets, December futures on 3-year treasury bonds was unchanged at 109.28.

The most liquid 3-year Korean treasury bond yield rose by 0.7 basis points to 1.773 per cent, while the benchmark 10-year yield rose by 0.9 basis points to 2.156 per cent.

REUTERS