South Korean shares fall as institutional investors book profits

SEOUL: Round-up of South Korean financial markets:

South Korean shares fell for a second straight session on Wednesday, led by institutional investors taking profits from recent gains ahead of major companies’ quarterly results.

The Korean won ended higher after temporarily turning down on the Japanese yen’s losses, while the benchmark bond yield dropped.

The benchmark KOSPI fell 11.07 points, or 0.47%, to 2,368.32 by the close of the session.

It followed a 0.85% fall in the previous session, which ended the KOSPI’s winning streak of nine consecutive sessions through Monday.

“Institutional investors led the losses with heavy selling pressure on chipmakers,” said Lee Kyoung-min, an analyst at Daishin Securities.

Technology giant Samsung Electronics fell 0.98% and peer SK Hynix lost 1.05%, while battery maker LG Energy Solution was flat.

Of the total 933 issues traded, 296 shares gained.

South Korean stocks end nine-day rally, BOJ policy in focus

Institutional investors were net sellers of shares worth 215.51 billion won ($174.00 million), while foreigners bought a net of 72.3 billion won.

The won ended onshore trade 0.11% higher at 1,237.4 per dollar. During the session, it fell as much as 0.63%, tracking the yen’s sharp losses.

The Bank of Japan maintained ultra-low interest rates, including a bond yield cap it was struggling to defend, defying market expectations it would phase out its massive stimulus programme in the wake of rising inflationary pressure.

Meanwhile, the Bank of Korea’s Governor Rhee Chang-yong said the central bank will have to take into account the trade-off between managing still-high inflation, economic growth and financial stability when determining policy in 2023.

In money and debt markets, March futures on three-year treasury bonds jumped 0.32 points to 104.75.

The most liquid three-year Korean treasury bond yield fell by 8.9 basis points (bps) to 3.395%, while the benchmark 10-year yield fell by 10.1 bps to 3.343%.