Seoul: Stocks fall most in three weeks on sharp foreign selloff

[SEOUL] South Korean shares ended down on Wednesday, logging their sharpest decline in three weeks, as foreigners continued to offload stocks on caution ahead of US inflation data due later in the day. Both the won and the benchmark bond yield fell.

The Kospi ended down 47.77 points or 1.49 per cent to 3,161.66, its biggest single-day drop since April 21. The index had ended 1.23 per cent lower on Tuesday.

Among the heavyweights, technology giant Samsung Electronics fell 1.48 per cent and peer SK Hynix fell 2.85 per cent, while LG Chem fell 5.27 per cent and Naver fell 1.72 per cent.

Foreigners were net sellers of 2.70 trillion won (S$3.19 billion) worth of shares on the main board, Refinitiv data showed, the second-biggest amount on record.

Shares of Samsung BioLogics gained 4.77 per cent, even as it denied a local media report that it was in talks with Pfizer to begin production of the US drugmaker's Covid-19 vaccine in South Korea as early as in August.

South Korea's unemployment rate fell to an eight-month low in April, while the number of people employed rose at the sharpest pace in nearly seven years as the economic recovery continued.

The won was quoted at 1,124.7 per dollar on the onshore settlement platform, 0.45 per cent lower than its previous close at 1,119.6.

In offshore trading, the won was quoted at 1,124.1 per dollar, down 0.4 per cent from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,123.5.

In money and debt markets, June futures on three-year treasury bonds fell 0.02 point to 110.93.

The most liquid three-year Korean treasury bond yield fell by 0.5 basis point to 1.123 per cent, while the benchmark 10-year yield fell by 1.3 basis points to 2.126 per cent.

REUTERS