Seoul: Stocks rise on foreign buying for fifth straight session

[SEOUL] South Korean shares ended higher on Wednesday, on strong buying by foreign investors for a fifth straight day on expectations of an economic recovery and stabilising US bond yields. The won strengthened, while the benchmark bond yield fell.

The Kospi closed up 10.33 points or 0.33 per cent at 3,137.41.

Foreigners were net buyers of 318.7 billion won (S$381.9 million) worth shares on the main board, extending the buying spree to a fifth straight day, the longest since November 2020.

They purchased net 1.9 trillion won worth shares over the previous four sessions.

IMF said on Tuesday unprecedented public spending to fight the Covid-19 pandemic, primarily by the United States, would push global growth to 6 per cent this year, a rate unseen since the 1970s.

US Treasury yields dipped on Tuesday, with five-year notes leading the decline, on investor views that market pricing based on an earlier-than-expected tightening by the Fed was too aggressive.

But the country reporting 668 new coronavirus cases for Tuesday, the highest daily count since Jan 8, weighed on the sentiment.

Samsung Electronics shares slid 0.47 per cent even as the company said its first-quarter profit likely rose 44 per cent, boosted by brisk sales of smartphones and TVs.

Meanwhile, its peer SK Hynix rose 0.35 per cent after local media reported the company is close to signing a long-term deal to provide automotive memory chips to German auto supplier Robert Bosch.

The won ended at 1,116.3 per dollar on the onshore settlement platform, 0.3 per cent higher than its previous close at 1,119.6.

In offshore trading, the won was quoted at 1,116.7, while in non-deliverable forward trading its one-month contract was quoted at 1,116.4.

The benchmark 10-year yield fell by 0.1 basis point to 2.067 per cent.

REUTERS

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