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Seoul: Stocks gain tracking China shares; won dips

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[SEOUL] South Korea's Kospi stock index rose on Tuesday, in line with Asian peers and Shanghai shares that touched a one-month high, while the won tumbled ahead of US GDP growth due on Friday. Bond yields rose. At 06:30 GMT, the Kospi was up 10.89 points or 0.48 per cent at 2,280.20.

Shares of South Korean companies with exposure to North Korea rose after a report said satellite images indicate Pyongyang has begun dismantling key facilities at a site used to develop engines for ballistic missiles.

South Korea's railway-related stocks rise; Busan Industrial Co Ltd and Hyundai Cement Co Ltd surge 30 per cent and 23.4 per cent respectively, while clothing companies which have a branch in Kaesung Industrial Complex in North Korea, such as In The F Co Ltd and Shinwon Corp, also gain.

The won was quoted at 1,135.2 per dollar on the onshore settlement platform, 0.33 per cent weaker than its previous close at 1,131.4, hitting its lowest close since Oct 2017. In offshore trading, the won was quoted at 1,134.8 per US dollar, down 0.15 per cent from the previous day, while in one-year non-deliverable forwards it was being asked at 1,118.69 per dollar.

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MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.59 per cent, after US stocks ended the previous session with gains. Japanese stocks rose 0.51 per cent. The KOSPI is down around 8.0 per cent so far this year and is down 7.43 per cent in the previous 30 days. 

The current price-to-earnings ratio is 12.10, the dividend yield is 1.28 per cent and the market capitalisation is 1,242.04 trillion won. The trading volume during the session on the Kospi index was 429,445,000 shares and of the total traded issues of 893, the number of advancing shares was 599.

Foreign investors were net buyers of 62,441 million won worth of shares. The US dollar has risen 6.42 per cent against the won this year. The won's high for the year is 1,053.55 per dollar on April 2, 2018 and low is 1,140.4 on July 19 2018.

In money and debt markets, September futures on three-year treasury bonds fell 0.09 points to 108.12. The Korean three-month Certificate of Deposit benchmark rate was quoted at 1.65 per cent, while the benchmark three-year Korean treasury bond yielded 2.096 per cent, higher than the previous day's 2.08 per cent.

REUTERS