Seoul: Stocks rise on tech boost, post monthly gain

[SEOUL] Gains in technology stocks drove South Korean shares higher on Wednesday, as better-than-expected Chinese factory data and a strong US consumer confidence report lifted investor sentiment. The won strengthened, while the benchmark bond yield fell.

The benchmark Kospi rose 10 points or 0.30 per cent to 3,296.68 at the close of trade. It gained 2.9 per cent in June, notching its eight straight monthly gain.

Among the heavyweights, technology giant Samsung Electronics fell 0.37 per cent and peer SK Hynix rose 2 per cent, while LG Chem firmed 1.31 per cent and Naver advanced 1.46 per cent.

China's June official manufacturing Purchasing Manager's Index (PMI) eased slightly to 50.9 versus 51.0 in May, data from the National Bureau of Statistics showed on Wednesday. It, however, exceeded analysts' forecast for a slowdown to 50.8.

Manufacturers index from China came in better than expected and lifted sentiment, while expectations of improvement in US consumption also helped the market, said Seo Sang-young, an analyst at Mirae Asset Securities.

Foreigners were net sellers of 11.7 billion won (S$13.9 million) worth of shares on the main board.

The won was quoted at 1,126.1 per dollar on the onshore settlement platform, 0.21 per cent higher than its previous close at 1,128.5.

In offshore trading, the won was quoted at 1,126.4 per dollar, up 0.5 per cent from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,126.4.

The Kospi has risen 14.73 per cent so far this year, and gained 4.9 per cent in the previous 30 trading sessions.

The trading volume during the session in the Kospi index was 1,581.04 million shares. Of the total traded issues of 911, the number of advancing shares was 434.

The won has lost 3.5 per cent against the dollar so far this year.

In money and debt markets, September futures on three-year treasury bonds rose 0.04 point to 109.99.

The most liquid three-year Korean treasury bond yield fell by 1.1 basis points to 1.448 per cent, while the benchmark 10-year yield fell by 1.8 basis points to 2.092 per cent.

REUTERS