Seoul: Stocks hit 7-week closing low ahead of LG Energy IPO

[SEOUL] South Korean shares ended at their lowest level in 7 weeks on Tuesday (Jan 18), extending the selling spree for a fourth day, as investors reduced their positions ahead of LG Energy Solution's US$10.8 billion initial public offering (IPO) and the US Federal Reserve policy meeting later this month.

The Korean won strengthened, while the benchmark bond yield fell.

The benchmark Kospi closed down 25.86 points, or 0.89 per cent, at 2,864.24, the lowest since Nov 30.

Chip giants Samsung Electronics and SK Hynix fell 0.65 per cent and 0.39 per cent, respectively, leading the declines, while Samsung Biologics also slid 2.42 per cent.

Battery maker LG Energy Solution's public subscription for retail investors takes place on Tuesday and Wednesday, after institutional investors placed bids that were valued at record US$12.8 trillion.

US Treasury yields continued to gain, with the short end of the curve hitting new pandemic highs, as expectations of hawkish stance at the Fed's upcoming meeting strengthened.

On the main board, institutional investors sold net 225.9 billion won (S$255.6 million) worth of shares, offsetting net buying of 214.3 billion won worth of shares by retail and foreign investors.

The won ended at 1,190.1 per dollar on the onshore settlement platform, 0.22 per cent higher than its previous close.

In offshore trading, the won was quoted at 1,190.3 per dollar, unchanged from the previous day, while in non-deliverable forward trading its 1-month contract was quoted at 1,190.9.

In money and debt markets, March futures on 3-year treasury bonds rose 0.06 point to 108.04.

The most liquid 3-year Korean treasury bond yield fell by 1.7 basis points to 2.131 per cent, while the benchmark 10-year yield fell by 0.5 basis point to 2.563 per cent.

REUTERS