Views Article – Sharenet Wealth

Asia, Forex

S.Korea stocks tread water; eyes on Sino-U.S. trade talks

* KOSPI index flat, foreigners net buyers * Korean won strengthens versus U.S. dollar * South Korea benchmark bond yield rises SEOUL, July 24 (Reuters) – Round-up of South Korean financial markets: ** South Korean shares veered between losses and gains waiting for signals from the U.S.-China trade talks, while concerns over weak corporate earnings from some major firms persisted. The Korean won and the benchmark bond yield rose. ** U.S. Trade Representative Robert Lighthizer and senior U.S. officials will travel to Shanghai on Monday for face-to-face trade meetings with Chinese officials, Bloomberg reported on Tuesday, citing unnamed sources. ** White House economic adviser Larry Kudlow on Tuesday called it a good sign that top U.S. officials would be travelling to China to discuss reviving stalled trade talks, and said he expected Beijing to start buying U.S. agriculture products soon. ** Shares of Samsung BioLogics Co Ltd fell 2.4% after the drugmaker reported a second-quarter loss on Tuesday. It pulled down the pharmaceutical sub-index down over 1%, making it the biggest percentage loser among KOSPI sub-indexes. ** LG Display Co Ltd shares traded down 2.4% after the company said on Tuesday its second-quarter operating loss widened to 369 billion won ($313.02 million) from 228 billion won a year earlier. That compared with analysts’ forecast of a loss of 268 billion won. ** The benchmark index rose earlier as Chinese stocks opened higher in response to U.S. reaction on the trade negotiation with China, said Seo Sang-young, an analyst at Kiwoon Securities. Still, South Korean stocks are generally riding on corporate earings, he added. ** As of 0230 GMT, the Seoul stock market’s main KOSPI index fell 1.17 points or 0.06% to 2,100.28. ** Foreigners were net buyers of 58.6 billion won ($49.76 million) worth of shares on the main board. ** The won was quoted at 1,178.7 per dollar on the onshore settlement platform , 0.02% higher than its previous close at 1,178.9. ** In offshore trading, the won was quoted at 1,177.7 per U.S. dollar, up 0.1% from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,177.0 per dollar. ** MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.38%, after U.S. stocks gained. Japanese stocks rose 0.55%. ** The KOSPI has risen 3.08% so far this year, but lost 0.5% in the previous 30 trading sessions. ** The current price-to-earnings ratio is 12.10, the dividend yield is 1.28% and the market capitalisation is 1,242.04 trillion won. ** The trading volume during the session on the KOSPI index was 276.07 million shares and of the total traded issues of 890, the number of advancing shares was 392. ** The won has lost 5.3% against the U.S dollar so far this year. ** In money and debt markets, September futures on three-year treasury bonds rose 0.04 points to 110.77, while the 3-month Certificate of Deposit rate was quoted at 1.59%. ** The most liquid 3-year Korean treasury bond yield fell by 1.1 basis points to 1.329%, while the benchmark 10-year yield rose by 0.1 basis point to 1.471%. ($1 = 1,177.7300 won) (Reporting by Hayoung Choi; Editing by Shounak Dasgupta)


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