South Korean shares dip; head for second weekly gain on ceasefire hopes

SEOUL: Round-up of South Korean financial markets: South Korean shares fell on Friday but were set to log a second weekly gain on hopes the US and Iran could secure a permanent ceasefire ahead of the expiry of the truce next week.

The won strengthened, while the benchmark bond yield rose.

The benchmark KOSPI was down 28.22 points, or 0.45%, at 6,197.83 as of 0031 GMT.

For the week, the index is up 5.90% so far. Among index heavyweights, chipmaker Samsung Electronics shed 0.80%, while peer SK Hynix lost 1.04%.

Battery maker LG Energy Solution climbed 0.84%.

Iran could consider allowing ships to sail freely through the Omani side of the Strait of Hormuz without risk of attack as part of proposals it has offered in negotiations with the United States, providing a deal is clinched to prevent renewed conflict, a source briefed by Tehran said.

Hyundai Motor and sister automaker Kia Corp were up 1.12% and up 0.44%, respectively. Steelmaker POSCO Holdings added 3.38%, while drugmaker Samsung BioLogics fell 0.87%.

Of the total 901 traded issues, 333 shares advanced, while 508 declined. South Korea’s finance minister said at a policy meeting that authorities aim to spend 85% of the 10.5 trillion won ($7.10 billion) earmarked for fuel cost relief within the first half of the year, following the approval by parliament of an extra budget.

Foreigners were net sellers of shares worth 376.6 billion won.

The KOSPI has risen 47.07% so far this year.

The won has weakened 2.7% against the dollar so far this year.

In money and debt markets, June futures on three-year treasury bonds lost 0.06 point to 104.26.

The most liquid three-year Korean treasury bond yield

 was flat at 3.337%, while the benchmark 10-year yield rose 4.2 basis points to 3.714%.‑Reuters