Seoul: Stocks log worst monthly drop since onset of pandemic
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[SEOUL] South Korean shares closed higher on Friday (Jan 28), but posted the sharpest monthly drop since the onset of the pandemic, as investors were rattled by a resurgence of local Covid-19 cases and the US Federal Reserve's pivot to policy tightening.
The Korean won weakened, while the benchmark bond yield fell.
The benchmark Kospi closed up 48.85 points, or 1.87 per cent, at 2,663.34. For the week, the index slumped 6.03 per cent, the sharpest loss since mid-March 2020.
For January, the index dropped 10.56 per cent, the most since an 11.69 per cent decline in March 2020.
Among the heavyweights, technology giant Samsung Electronics rose 2.81 per cent and peer SK Hynix climbed 6.17 per cent, while LG Chem advanced 4.75 per cent and Naver gained 2.31 per cent.
It has been a volatile few days due to a hawkish Federal Reserve and geopolitical risks in Ukraine, and the only positive momentum traders seem to look forward to is corporate earnings in the coming weeks, said Park Kwang-nam, an analyst at Mirae Asset Securities.
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South Korea reported 16,096 new coronavirus cases for Thursday, another daily record after posting 14,518 a day before, amid the spread of the highly infectious Omicron variant, the Korea Disease Control and Prevention Agency said.
Foreigners were net sellers of 693.1 billion won (S$777.9 million) worth of shares on the main board.
The won was quoted at 1,205.5 per dollar on the onshore settlement platform, 0.22 per cent lower than its previous close at 1,202.8.
In offshore trading, the won was quoted at 1,206.4 per dollar, down 0.2 per cent from the previous day, while in non-deliverable forward trading its 1-month contract was quoted at 1,207.1.
The Kospi has dropped 10.56 per cent so far this year, but lost 12.5 per cent in the previous 30 trading sessions.
The most liquid 3-year Korean treasury bond yield fell by 2.2 basis points to 2.195 per cent, while the benchmark 10-year yield lost 1.1 basis points to 2.601 per cent. REUTERS
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