Seoul: Stocks end higher, post biggest weekly gain in 2 months

SOUTH Korean shares closed 1.8 per cent higher on Friday (May 20) and posted their biggest weekly gain in 2 months, as China’s policy measures and a weaker dollar boosted investor sentiment.

The won jumped and snapped a 6-week falling streak, while the benchmark bond yield fell.

The Kospi ended up 46.95 points, or 1.81 per cent, at 2,639.29, marking the highest close in 2 weeks. For the week, it rose 1.35 per cent.

Risk sentiment improved amid eased downside factors like the Ukraine crisis and China’s lockdown, while China also showed that the country is now in a time of economic stimulus policies, said Mirae Asset Securities’ analyst Seo Sang-young.

China cut its benchmark reference rate for mortgages by an unexpectedly wide margin.

Among heavyweights, technology giant Samsung Electronics rose 0.74 per cent and peer SK Hynix gained 1.35 per cent, while battery maker LG Energy Solution and its parent company LG Chem surged 4.45 per cent and 8.57 per cent each.

S-Oil lost 0.93 per cent after the oil refiner suspended production of several processing units due to a blast at its Onsan refinery.

Foreigners were net buyers of 194 billion won (S$210.9 million) worth of shares on the main board.

The won was last quoted at 1,268.1 per dollar on the onshore settlement platform, up 0.76 per cent.

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The currency strengthened by 1.27 per cent against the dollar for the week. It also marked the fastest weekly gain since mid-March.

In offshore trading, the won was quoted at 1,267.8 per dollar, down 0.4 per cent, while in non-deliverable forward trading, its 1-month contract was quoted at 1,267.3.

In money and debt markets, June futures on 3-year treasury bonds rose 0.15 point to 105.44.

The most liquid 3-year Korean treasury bond yield fell by 3.3 basis points to 3.013 per cent, while the benchmark 10-year yield fell by 6.2 basis points to 3.245 per cent. REUTERS