Seoul: Stocks hit 2-week high as chipmakers boost

SOUTH Korean shares rose nearly 1 per cent to touch their highest level in 2 weeks on Tuesday (Apr 19) boosted by chipmakers, which tracked the US semiconductor index overnight. The Korean won weakened and the benchmark bond yield fell.

The benchmark Kospi closed up 25.68 points, or 0.95 per cent, at 2,718.89, the highest since Apr 6.

Heavyweight chipmakers led gains on the index, with Samsung Electronics and SK Hynix rising 0.9 per cent and 3.21 per cent, respectively. Battery maker LG Energy Solution gained 0.58 per cent.

Investor sentiment for semiconductor industry improved as the US Philadelphia semiconductor index rebounded on Monday on signs that a coronavirus resurgence in China is slowing down, said Daishin Securities’ analyst Lee Kyoung-min.

South Korea’s central bank governor nominee Rhee Chang-yong said on Tuesday the bank would continue to tighten monetary policy, but suggested the pace of hikes will be more sedate than what is expected of the US Federal Reserve.

Foreigners were net sellers of 1.3 billion won (S$1.4 million) worth of shares on the main board, extending sell-offs to a tenth straight session.

Of the total traded issues of 927 on the main Kospi index, the number of advancing shares was 605.

The won closed trading at 1,236.9 per dollar on the onshore settlement platform, 0.2 per cent lower than its previous close at 1,234.4.

In offshore trading, the won was quoted at 1,236.1 per dollar, down 0.1 per cent from the previous day, while in non-deliverable forward trading its 1-month contract was quoted at 1,236.1.

In money and debt markets, June futures on 3-year treasury bonds rose 0.08 point to 105.27 in late afternoon trade.

The most liquid 3-year Korean treasury bond yield fell by 1.1 basis points to 2.974 per cent, while the benchmark 10-year yield fell by 0.8 basis point to 3.344 per cent. REUTERS