Seoul: Stocks, won fall as Wall Street slides; benchmark bond yield drops

SOUTH Korean stocks fell for a fourth consecutive session on Friday (May 6), their longest losing streak since Jan 27, hit by the turbulence on Wall Street. The won weakened, while the benchmark bond yield dropped slightly.

The benchmark Kospi slipped 33.06 points or 1.23 per cent to 2,644.51, reflecting the US market’s moves over the past 2 sessions as the local market was closed on Thursday for a public holiday.

"Investors are still worried about a 75-basis-point increase of the US interest rate and this hit growth stocks harder in the absence of positive news strong enough to counter the gloomy sentiment,” said Na Jeong-hwan, analyst at Cape Investment & Securities.

US stocks rallied on Wednesday after the Federal Reserve delivered a widely expected interest-rate hike, but ended sharply lower on Thursday on concerns the increase would not be enough to rein in US inflation.

In Seoul, most heavyweights dropped, with technology giant Samsung Electronics falling 2.06 per cent and peer SK Hynix dropping 1.83 per cent, while battery maker LG Energy Solution was flat.

Foreigners were net sellers of 477.8 billion won (S$520.9 million) worth of shares on the main board.

The won was last quoted at 1,272.7 per dollar on the onshore settlement platform, 0.5 per cent lower than its previous close at 1,266.3.

In offshore trading, the won was quoted at 1,272.4 per dollar, down 0.3 per cent from the previous day, while in non-deliverable forward trading its 1-month contract was quoted at 1,272.1.

The Kospi has fallen 11.19 per cent so far this year, and lost 2.1 per cent in the previous 30 trading sessions.

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The trading volume during the session in the Kospi index was 1,312.48 million shares. Of the total 928 issues traded, 227 shares advanced while 655 declined.

The won has lost 6.6 per cent against the dollar so far this year.

In money and debt markets, June futures on 3-year treasury bonds rose 0.13 point to 104.80 in late afternoon trade.

The most liquid 3-year Korean treasury bond yield fell by 6.8 basis points to 3.149 per cent, while the benchmark 10-year yield fell by 1.0 basis point to 3.452 per cent. REUTERS