South Korean shares hit record as chipmakers rally ahead of earnings

[SEOUL] South Korean shares jumped more than 2 per cent to a record close on Monday (Apr 27), as chipmakers rallied ahead of major earnings due to be released later this week. The benchmark Kospi closed up 139.40 points, or 2.15 per cent, at 6,615.03.

Chipmaker Samsung Electronics rose 2.28 per cent, while peer SK Hynix gained 5.73 per cent to an all-time high, after the Philadelphia Semiconductor Index surged 4.3 per cent on Friday to a record high.

Samsung Electronics is scheduled to report its first-quarter results later this week.

Also this week, investors will focus on the earnings reports of major US technology companies for clues on global artificial intelligence investments and their impact on semiconductor demand.

“When it comes to the earnings of big tech companies, there will be growth in cloud services, but the focus will be on profit margins,” said Seo Sang-young, an analyst at Mirae Asset Securities.

On the macroeconomic front, South Korea will release its monthly trade data for April later this week.

Among other index heavyweights, battery maker LG Energy Solution slid 3.53 per cent, while Hyundai Motor and sister automaker Kia Corp were up 2.14 per cent and down 0.52 per cent, respectively.

Of the total 895 traded issues, 496 shares advanced, while 360 declined.

Foreigners were net buyers of shares worth US$603.97 million.

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The won was quoted at 1,472.5 per dollar on the onshore settlement platform, 0.29 per cent higher than its previous close at 1,476.8.

The most liquid three-year Korean treasury bond yield fell 0.6 basis point to 3.493 per cent, while the benchmark 10-year yield rose by 0.9 bp to 3.820 per cent. REUTERS