Seoul: Stocks end lower for fifth day; LG Energy IPO in focus

[SEOUL] South Korean shares closed lower for a fifth straight session on Wednesday (Jan 19), and touched their lowest in 7 weeks, as rising US yields sapped risk appetite amid volatility ahead of LG Energy Solution's US$10.8 billion initial public offering (IPO).

Both the Korean won and the benchmark bond yield fell.

The benchmark Kospi closed down 21.96 points, or 0.77 per cent, at 2,842.28, marking its longest losing streak since late November. It has fallen 4.55 per cent so far this year.

Among heavyweights, Samsung Electronics fell 0.91 per cent, while LG Chem and Naver dropped 5.91 per cent and 1.63 per cent, respectively.

Battery maker LG Energy's public subscription for retail investors ends later on Wednesday, with investors placing bids worth more than 32 trillion won (S$36.2 billion) solely on Tuesday, after institutional investors placed bids that were valued at record US$12.8 trillion.

Benchmark US Treasury yields jumped to 2-year highs, with 2-year Treasury yields rising above 1 per cent for the first time since February 2020, as traders priced in a more hawkish Fed before the US central bank's policy meeting next week.

Outage on a oil pipeline from Iraq to Turkey increased concerns about an already tight supply outlook, which also weighed on the risk appetite.

Foreigners were net buyers of 27.6 billion won worth of shares on the main board.

The won ended at 1,191.7 per dollar on the onshore settlement platform, down 0.13 per cent.

In offshore trading, the won was quoted at 1,191.3 per dollar, while in non-deliverable forward trading, its 1-month contract was quoted at 1,191.9.

In money and debt markets, March futures on 3-year treasury bonds rose 0.12 point to 108.25.

The most liquid 3-year Korean treasury bond yield fell by 5.4 basis points to 2.073 per cent.

REUTERS