Seoul: Stocks snap 10th straight weekly gain; Kospi down 2%

[SEOUL] South Korean shares on Friday logged the fastest decline in more than two months, towed by major heavyweights, as profit-taking and foreign selloff eclipsed optimism over a US stimulus plan. Both the won and the benchmark bond yield fell.

The benchmark Kospi closed down 64.03 points or 2.03 per cent at 3,085.90, marking the sharpest fall since Oct 30, and after gaining as much 1.3 per cent in early trade.

The index slid 2.1 per cent for the week, reversing the 10 straight weeks of gains.

President-elect Joe Biden outlined a US$1.9 trillion stimulus package proposal on Thursday, urging the need for bold investment and to accelerate the distribution of vaccines.

Majority of heavyweights tumbled: Chip giants Samsung Electronics and SK Hynix fell 1.9 per cent and 2.3 per cent, respectively, while LG Chem and Hyundai Motor dropped 3.1 per cent and 4.2 per cent, respectively.

Foreigners were net sellers of 761.7 billion won (S$919.3 million) worth of shares on the main board.

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Meanwhile, South Korea's central bank kept its policy rate unchanged on Friday as the policy focus shifted away from an urgent need to support the economic recovery to growing risks from a hot stock market rally and booming household debt.

The won ended at 1,099.4 per dollar on the onshore settlement platform, 0.13 per cent lower than its previous close.

The currency edged down 0.87 per cent on a weekly basis, after sliding 0.32 per cent in the previous week.

In offshore trading, the won was quoted at 1,098.6, while in non-deliverable forward trading its one-month contract was quoted at 1,098.0.

In money and debt markets, March futures on three-year treasury bonds rose 0.04 point to 111.56.

The most liquid three-year Korean treasury bond yield fell by 1.3 basis points to 0.976 per cent.

REUTERS