Seoul: Stocks end higher; post third weekly drop on concerns over economy

SOUTH KOREAN shares jumped more than 2 per cent on Friday (May 13), after US producer prices in April rose more-than-expected, but the benchmark index posted its third weekly decline due to concerns around policy tightening and economic growth.

The benchmark Kospi rose 54.16 points or 2.12 per cent to close at 2,604.24. For the week, it declined 1.5 per cent.

The firm won triggered more buying from foreign investors in the afternoon, and the Nasdaq futures rising in after-hours also helped, said Lee Kyung-min, an analyst at Daishin Securities.

South Korea’s new President Yoon Suk-yeol said he was worried about slower economic growth for the year ahead, with the country logging a trade deficit and currency markets growing more volatile.

Among the heavyweights, technology giant Samsung Electronics and peer SK Hynix rose 2.47 per cent and 3.21 per cent, respectively, while battery maker LG Energy Solution gained 3.22 per cent.

Foreigners were net buyers of 60.5 billion won (S$65.7 million) worth of shares on the main board.

The won was quoted at 1,284.2 per dollar on the onshore settlement platform, 0.34 per cent higher than its previous close at 1,288.6.

In offshore trading, the won was quoted at 1,283.7 per dollar, up 0.5 per cent from Thursday, while in non-deliverable forward trading its 1-month contract was quoted at 1,283.6.

The Kospi has fallen 12.54 per cent so far this year, and lost 7.2 per cent in the previous 30 trading sessions.

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The trading volume was 772.10 million shares. Of the total 928 traded issues, 740 advanced.

In money and debt markets, June futures on 3-year treasury bonds fell 0.03 point to 105.65.

The most liquid 3-year Korean treasury bond yield rose by 0.8 basis point to 2.909 per cent, while the benchmark 10-year yield rose by 5.8 basis points to 3.225 per cent. REUTERS