South Korean shares rise but pare gains on foreign selling over Mideast worry

SEOUL: Round-up of South Korean financial markets:

South Korean shares rose for a second straight day on Wednesday, but gave up early gains as uncertainty in the Middle East kept investors cautious and triggered foreign selling.

The benchmark KOSPI closed up 77.36 points, or 1.4%, at 5,609.95, after rising as much as 3.9% during the day. It had ended Tuesday 5.3% higher.

“… Market sentiment was upbeat at first, but the index cut gains as foreigners turned net sellers,” said Park Kwang-nam, an analyst at Mirae Asset Securities.

“The market reacted sensitively to position changes amid thin trading, as there still are fears over persistent uncertainty.”

The market opened higher after a report that the International Energy Agency had proposed a record release of oil reserves to rein in crude prices inflated by the Iran war.

South Korea is taking part in IEA-led discussions but has yet to decide its stance, a spokesperson for the country’s industry ministry said.

Separately, the finance minister said the government will consider all available policy measures, including drafting an extra budget, to minimise any domestic impact from the crisis.

Among index heavyweights, chipmaker Samsung Electronics rose 1.12% and peer SK Hynix gained 1.81%. Battery maker LG Energy Solution added 0.68%.

Of the total 927 traded issues, 703 advanced and 200 declined.

Foreigners were net sellers of shares worth 257.3 billion won ($175.7 million).

The won was quoted at 1,466.5 per dollar on the onshore settlement platform, 0.07% firmer than Tuesday’s close of 1,467.5.

The most liquid three-year Korean treasury bond yield fell 3.4 basis points to 3.248%, while the benchmark 10-year yield shed 1.9 basis points to 3.610%.