Seoul: Stocks end lower, government vows market monitoring as won fluctuates

[SEOUL] South Korean shares closed lower on Monday (Jan 10), dragged by expectations of faster-than-anticipated interest rate hikes by the US Federal Reserve. The Korean won strengthened, while the benchmark bond yield rose.

The benchmark Kospi ended 28.17 points, or 0.95 per cent, lower at 2,926.72.

Among the heavyweights, technology giant Samsung Electronics fell 0.38 per cent and peer SK Hynix slid 1.97 per cent. LG Chem declined 1.25 per cent and Naver slipped 0.89 per cent.

Tech shares as well as growth stocks were weaker on concerns that the Fed may normalise monetary policies faster than earlier expected, said Lee Kyoung-min, an analyst at Daishin Securities.

Finance minister Hong Nam-ki on Monday vowed to closely monitor currency market movements as the won is hovering a year-and-a-half low.

Foreigners were net sellers of 82.2 billion won (S$93 million) worth of shares on the main board.

The won was quoted at 1,199.1 per dollar on the onshore settlement platform, 0.2 per cent higher than its previous close at 1,201.5.

In offshore trading, the won was quoted at 1,197.0 per dollar, up 0.1 per cent, while in non-deliverable forward trading, its 1-month contract was quoted at 1,197.5.

The Kospi is down 1.71 per cent so far this year, but lost 0.9 per cent in the previous 30 trading sessions.

The trading volume was 470.42 million shares. Of the total traded issues of 931, the number of advancing shares was 258.

The won has lost 0.9 per cent against the dollar so far this year.

In money and debt markets, March futures on 3-year treasury bonds was unchanged at 108.20.

The most liquid 3-year Korean treasury bond yield rose by 4.7 basis points to 2.061 per cent, while the benchmark 10-year yield rose by 2.6 basis points to 2.484 per cent.

REUTERS