Seoul: Retail investors lift shares; caution on virus, US election uncertainties

[SEOUL] South Korean shares bounced back from earlier losses to end higher on Wednesday, boosted by retail investors, although investors were cautious on surging coronavirus cases globally and uncertainty ahead of the US election. Both the won and the benchmark bond yield weakened.

The Kospi jumped 14.42 points or 0.62 per cent to close at 2,345.26, after declining as much as 0.6 per cent to its lowest since Sept 28 earlier in the session.

South Korea reported 103 new coronavirus cases as of Tuesday midnight, more than 88 a day earlier, while European governments moved to impose new curbs.

US President Donald Trump said on Tuesday an economic relief package would likely come after the Nov 3 election.

"Volatility will likely remain high ahead of the US election. Surging infections in Europe and the United States are also worrisome," said DS Investment & Securities' analyst Na Jeong-hwan, adding gains were mainly led by retail investors.

Retail investors bought net 150.79 billion won (S$181.6 million) worth of shares on the main board, while foreigners were net buyers of 11.03 billion won, according to Korea Exchange data.

Heavyweights web portal operator Naver and messaging app service provider Kakao soared 5.3 per cent and 3.7 per cent, respectively, leading gains.

But chip giant Samsung Electronics fell 1.3 per cent, extending losses to a second session, following the death of the group's chairman on Sunday.

The won ended at 1,130.6 per US dollar on the onshore settlement platform, 0.45 per cent lower than its previous close at 1,125.5.

In offshore trading, the won was quoted at 1,130.9 per dollar, while in non-deliverable forward trading its one-month contract was quoted at 1,130.6.

The most liquid three-year Korean treasury bond yield fell by 0.1 basis point to 0.916 per cent.

REUTERS