Seoul: Shares post sharpest weekly gain since 2008

[SEOUL] South Korean shares surged 4 per cent to a record high on Friday, and posted the sharpest weekly gain in over 12 years, boosted by a surge in Samsung Electronics and Hyundai Motor and on massive foreign buying. The won weakened, while the benchmark bond yield rose.

The benchmark Kospi closed up 120.50 points or 3.97 per cent to 3,152.18, after surging as much as 4.3 per cent during the session.

For the week, the index jumped 9.7 per cent, the sharpest weekly gain since October 2008 and extending gains to a second week.

Chip giants Samsung Electronics ended up 7.1 per cent after it said its fourth quarter operating profit likely rose 26 per cent as coronavirus pandemic-driven remote working and TV-watching fuelled sales of chips and display panels. Peer SK Hynix also jumped 2.6 per cent.

Shares of Hyundai Motor ended 19.4 per cent higher after the company said it was in early discussions with Apple, following media reports that the two were in talks to cooperate on electric cars and batteries.

Other heavyweights such as LG Chem, Naver and Samsung SDI also soared 3.4 per cent, 7.8 per cent and 5.9 per cent, respectively.

Foreigners were net buyers of 1.64 trillion won (S$1.99 billion) worth of shares on the main board.

"Hopes for Blue Wave under incoming President Joe Biden and the US services PMI data added to the sentiment," said Na Jeong-hwan, analyst at DS Investment & Securities.

The won ended at 1,089.8 per dollar on the onshore settlement platform, 0.23 per cent lower than its previous close.

It slid 0.2 per cent on a weekly basis, marking the second straight week of losses.

In offshore trading, the won was quoted at 1,089.4, while in non-deliverable forward trading its one-month contract was quoted at 1,088.7.

The most liquid three-year Korean treasury bond yield rose by 1.7 basis points to 0.980 per cent.

REUTERS