Seoul: Samsung Electronics rally, US stimulus lift stocks to record high

[SEOUL] South Korean shares jumped to a record high on Monday, driven by market heavyweight Samsung Electronics and as US.

President Donald Trump signed a long-awaited coronavirus aid bill. Both the won and the benchmark bond yield rose.

The benchmark Kospi was up 14.73 points, or 0.5 per cent, at 2,821.59 by 0152 GMT, after rising as much as 1 per cent in early trade.

Mr Trump on Sunday signed into law a US$2.3 trillion pandemic aid and spending package, officials said, restoring unemployment benefits to millions of Americans and averting a partial federal government shutdown.

The US stimulus news outweighed worries over South Korea reporting the first variant of coronavirus linked to the rapid rise in infections in Britain in three people. There were 808 new Covid-19 cases for Sunday.

"Samsung shares soared a day before the ex-dividend date on massive buying by retail investors," said Na Jeong-hwan, an analyst at DS Investment & Securities, adding that the discovery of the new coronavirus variant at home might weigh on markets.

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Chip giant Samsung Electronics jumped as much as 3 per cent on continued dividend hopes.

Peer SK Hynix was up 0.9 per cent. Other market heavyweights Hyundai Motor and Celltrion rose 1.1 per cent and 1.4 per cent, respectively.

Foreigners were net sellers of 126.6 billion won (S$153.3 million) worth of shares on the main board.

The won was quoted at 1,099.5 per US dollar on the onshore settlement platform , 0.3 per cent higher than its previous close at 1,103.0.

In offshore trading, the won was quoted at 1,099.3, while in non-deliverable forward trading its one-month contract was quoted at 1,097.0.

In money and debt markets, March futures on three-year treasury bonds fell 0.02 points to 111.51.

The most liquid three-year Korean treasury bond yield rose by 0.7 basis point to 0.957 per cent.

REUTERS