South Korean shares fall for fourth session on sell-off worries
25/04/2023 07:31
*
KOSPI falls for fourth straight session
*
Korean won strengthens against US dollar
*
South Korea benchmark bond yield rises
*
For the midday report, please click urn:newsml:reuters.com:*:nL1N36S039
SEOUL, April 25 (Reuters) - Round-up of South Korean
financial markets:
** South Korean shares ended more than 1% lower on Tuesday,
amid increased worries about forced sell-offs of leveraged
stocks.
** The Korean won ended higher on authorities' intervention,
while the benchmark bond yield rose.
** The benchmark KOSPI .KS11 closed down 34.48 points, or
1.37%, at 2,489.02, extending its losing streak to a fourth
session and marking the lowest closing level since April 6.
** South Korea's economy barely averted a recession, posting
slim growth in the first quarter, but the outlook remained
clouded.
** "Market volatility increased due more to an internal
factor of supply and demand issues than external ones," said
analyst Lee Kyoung-min at Daishin Securities.
** "There were worries about forced-selling of leveraged
holdings, which sharply increased this year, amid growing
downward pressure on stock prices."
** Some sectors in the market have recently been overheated
with a surge in leveraged trading, the country's financial
regulator warned on Tuesday.
** Most index heavyweights, including chipmakers, battery
makers, and online platform service providers, fell by nearly 2%
or more.
** Seoul Citi Gas Co Ltd 017390.KS , Daesung Holdings Co
Ltd 016710.KS , Samchully Co Ltd 004690.KS and Sebang Co Ltd
004360.KS fell by nearly 30% each to their daily lower limits
for a second session.
** Meanwhile, Hyundai Motor Co 005380.KS jumped 4.74%
after the automaker said it had finalised a $5 billion electric
vehicle battery joint venture in the United States, and reported
that its first-quarter net profit had more than doubled. Sister
automaker Kia Corp 000270.KS rose 2.24%.
** Of the total 932 issues traded, 248 shares rose.
** Foreigners were net buyers of shares worth 6.9 billion
won ($5.2 million).
** The won ended onshore trade KRW=KFTC 0.20% higher at
1,332.2 per dollar, after falling 0.18% earlier.
** South Korean foreign exchange authorities were suspected
of selling U.S. dollars to support the local currency, multiple
dealers said soon after a senior official warned against
increased volatility.
** The most liquid three-year Korean treasury bond yield
rose by 3.3 basis points to 3.263%, while the benchmark 10-year
yield rose by 1.6 basis points to 3.322%.
($1 = 1,333.3600 won)
(Reporting by Jihoon Lee; Editing by Varun H K)
((jihoon.lee@thomsonreuters.com;))