Seoul: Shares hit near three-year high on Samsung Elec, SK Hynix boost

[SEOUL] South Korean shares rose on Monday as heavyweights Samsung Electronics and SK Hynix jumped on recovering demand and an upbeat outlook for the chip industry, even as tightening Covid-19 curbs at home limited gains.

The won strengthened, while the benchmark bond yield fell.

By 0227 GMT, the Kospi rose 44.20 points or 1.7 per cent to 2,597.70. It rose as much as 1.8 per cent a 34-month high, earlier in the session.

Chip giants Samsung Electronics and SK Hynix surged over 3 per cent on higher demand prospects and an optimistic 2021 earnings outlook, as data showed the country's chip exports during Nov 1-20 surged 21.9 per cent from a year earlier.

South Korean exports grew 11.1 per cent during Nov 1-20 from the same period a year earlier, reversing a 5.9 per cent decline in the previous month, helped by strong chip sales and overseas demand.

Shares of South Korean electric vehicle (EV) battery maker LG Chem rose as much as 3.2 per cent to a two-week high after local media reports of Tesla Inc placing battery orders for its Model Y car.

Samsung Heavy Industries shares rose as much as 18.9 per cent to a near six-month high after the company bagged a US$2.5 billion supply order.

South Korea reported another daily rise of more than 200 new coronavirus cases on Monday, a day after it tightened social distancing rules as it battles a third wave of infection.

Foreigners were set to extend their buying spree for a thirteenth straight session, purchasing net 481.5 billion won (S$580.6 million) worth of shares on the main board. They bought a total net 5.38 trillion won worth shares over the past 12 sessions.

The won was quoted at 1,112.9 per US dollar on the onshore settlement platform, 0.1 per cent higher than its previous close at 1,114.3.

In offshore trading, the won was quoted at 1,112.7, while in non-deliverable forward trading its one-month contract was quoted at 1,112.4.

The most liquid three-year Korean treasury bond yield fell by 0.7 basis point to 0.956 per cent.

REUTERS