Seoul: Stocks log biggest weekly decline in six on inflation, supply-chain woes

[SEOUL] South Korean shares tumbled on Friday, logging the sharpest weekly decline in six weeks, after sentiment across the region was hit by concern over inflation and China's power crisis and its impact on global supply chains. The won weakened, while the benchmark bond yield rose.

The Kospi ended down 49.64 points or 1.62 per cent at 3,019.18. For the week, the index dropped 3.39 per cent on a weekly basis, the biggest fall since mid-August. It fell 0.49 per cent in the previous week.

Leading benchmark declines were tech heavyweights, with chip giants Samsung Electronics and SK Hynix falling 1.21 per cent and 2.91 per cent, respectively, while platform company Naver fell 1.55 per cent.

"Worries about persisting supply-chain disruptions globally due to China's power crunch are seen dampening investor sentiment. That has added to concerns about upcoming corporate earnings," said Huh Jae-hwan, an analyst at Eugene Investment & Securities.

Foreigners were net sellers of 299.9 billion won (S$343.5 million) worth of shares on the main board.

The won ended at 1,188.7 per dollar on the onshore settlement platform, 0.40 per cent lower than its previous close at 1,184.

In offshore trading, the won was quoted at 1,187.2 per dollar, down 0.3 per cent from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,187.5.

In money and debt markets, December futures on three-year treasury bonds fell 0.16 point to 109.24, while the three-month Certificate of Deposit rate was quoted at 1.04 per cent in late afternoon trade.

The most liquid three-year Korean treasury bond yield rose by 3.9 basis points to 1.633 per cent, while the benchmark 10-year yield rose by 2.2 basis points to 2.259 per cent.

REUTERS