Bad U.S. jobs report restricts market’s rise
Seoul shares inched up 0.05 percent or 1 point on Monday to close at this year’s highest level, overtaking a record set on Friday. A rally in Samsung Electronics shares helped, but the market’s gains were capped as investors remained cautious following weaknesses in U.S. job data.The benchmark Kospi finished up at 2,046.43.
“The market will likely move within a boxed-in range this week following last week’s dismal U.S. job figures,” said Kwak Hyun-su, a market analyst at Shinhan Investment Corp.
Data on Friday showed U.S. payrolls in March increased the least since December 2013.
“Investors are unsure how they should feel about poor U.S. job data. On the one hand, it’s a signal that the Fed may hold off a rate hike, while on the other hand, it may be a sign that the U.S. economy may be headed for a softer patch,” Kwak added.
Foreign investors and institutions were sellers of a net 24.4 billion won and 105 billion won worth of stocks respectively, while retail investors were buyers of a net 120.8 billion won.
Samsung Electronics, the biggest share on the primary market, rose 2.5 percent to 1,470,000 won ahead of its first quarter earnings guidance, which is expected to come out today.
The world’s No. 1 memory chip maker is expected to report forecast-beating earnings figures with its first quarter operating profit seen at 5.6 trillion won compared with an earlier market consensus of around 5.4 trillion, according to Jin Sung-hye, an analyst at KTB Investment & Securities.
Auto shares lagged, with Hyundai Motor losing 2.4 percent and Hyundai Mobis down 2.3 percent.
The Korean won advanced against the dollar for a fourth day, the longest run of gains since November. The won climbed 0.7 percent to 1,085.03 a dollar as of the 3.p.m. close in Seoul.
The 10-year sovereign bond rose for a sixth day, pushing the yield to the lowest on record, while the three-year notes were steady.
The yield on the 3 percent notes due September 2024 fell two basis points, or 0.02 percentage point, to 2.07 percent.
BY PARK JUNG-YOUN [park.jungyoun@joongang.co.kr]
with the Korea JoongAng Daily
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