Seoul: Stocks gain for third session on upbeat US equity futures

[SEOUL] South Korean shares rose for a third straight session on Friday (Feb 4) and logged their best weekly gain in almost a year, tracking strength in US equity futures after online retailer Amazon.com beat profit estimates. The Korean won strengthened, while the benchmark bond yield rose.

The benchmark Kospi rose 42.44 points, or 1.57 per cent, to 2,750.26. It was a holiday-shortened week but the index gained 3.2 per cent on Thursday and Friday combined, the best weekly gain in a year.

Among heavyweights, technology giant Samsung Electronics rose 0.95 per cent and peer SK Hynix added 0.4 per cent, while LG Chem inched higher 0.15 per cent and Naver rose 2.18 per cent.

Amazon.com's surprise earnings created positive sentiment about big tech companies and led to better market sentiment, while a stronger won helped to attract offshore investor demand, said Na Jeong-hwan, an analyst at Cape Investment & Securities.

Foreigners were net buyers of 190.4 billion won (S$213.7 million) worth of shares on the main board.

The won was quoted at 1,197 per dollar on the onshore settlement platform, 0.79 per cent higher than its previous close at 1,206.4.

In offshore trading, the won was quoted at 1,197.7 per dollar, up 0.1 per cent from the previous day, while in non-deliverable forward trading its 1-month contract was quoted at 1,198.4.

The Kospi has fallen 7.64 per cent so far this year, but lost 10.3 per cent in the previous 30 trading sessions.

The trading volume during the session in the Kospi index was 526.52 million shares. Of the total traded issues of 930, the number of advancing shares was 767.

The won has lost 0.7 per cent against the dollar so far this year.

In money and debt markets, March futures on 3-year treasury bonds fell 0.11 point to 108.

The most liquid 3-year Korean treasury bond yield rose by 3.6 basis points to 2.195 per cent, while the benchmark 10-year yield rose by 5.4 basis points to 2.622 per cent. REUTERS