Seoul: Shares post record closing high on chip sector outlook

[SEOUL] South Korean shares jumped to a record closing high on Wednesday, helped by chip makers after Micron Technology raised its revenue outlook for the first quarter of 2021, while vaccine-related progress and US stimulus hopes also supported sentiment. Both the won and the benchmark bond yield rose.

The benchmark Kospi ended up 41.65 points or 1.58 per cent at 2,675.9, after gaining 1.7 per cent on Tuesday.

Chip giant Samsung Electronics hit a record high while peer SK Hynix surged to a near 20-year peak on strong November trade data and Micron Technology raising its revenue outlook.

Samsung Electronics and SK Hynix make up about 30 per cent of the Kospi's total market capitalisation.

Moderna and Pfizer-BioNTech are in a tight race to launch their Covid-19 vaccines in Europe after both applied for emergency European Union approvals on Tuesday.

A top US Senate Republican Mitch McConnell said on Tuesday that the Congress should include a new coronavirus stimulus in a US$1.4 trillion spending bill.

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"Possibilities of (US) stimulus and vaccine development before the year-end boosted investor sentiment," said Samsung Securities analyst Seo Jung-hun, adding that Micron raising its earnings guidance stoked optimism about the chip industry.

Foreigners were net buyers of 514.1 billion won (S$621.2 million) worth of shares on the main board.

The won ended at 1,100.8 per US dollar on the onshore settlement platform, 0.49 per cent higher than its previous close, and the strongest finish since mid-June 2018.

In offshore trading, the won traded at 1,100.2, while in non-deliverable forward trading its one-month contract was quoted at 1,100.1.

In money and debt markets, December futures on three-year treasury bonds fell 0.03 point to 111.57.

The most liquid three-year Korean treasury bond yield rose by 0.1 basis point to 0.984 per cent.

REUTERS