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Seoul stocks bounce back after Fed decision

Nov 01,2019
Stocks snapped a two-day losing streak to end higher Thursday as a U.S. rate cut lifted market sentiment in a busy week of corporate earnings, analysts said. The won strengthened against the dollar.

The benchmark Kospi moved up 3.21 points, or 0.15 percent, to close at 2,083.48. Trading volume was moderate at 450.54 million shares worth 5.67 trillion won ($4.87 billion), with gainers beating losers 419 to 372.

Market sentiment was lifted after the Federal Reserve cut interest rates as expected, raising odds of another rate cut by Korea to spur its slowing economy.

U.S. gross domestic product grew at a faster-than-expected pace of 1.9 percent in the third quarter, reinforcing investor sentiment.

“The Federal Reserve’s monetary easing and upbeat U.S. GDP growth positively affected the local stock market,” Choi Yu-jun, an analyst at Shinhan Investment, said. “Foreigners turned to net sellers to boost the market.”

Foreigners and institutions bought a net 35.6 billion won and 59.6 billion won, respectively, while retail investors dumped a net 151.7 billion won.

Samsung Electronics was steady at 50,400 won after the tech giant announced better-than-expected third-quarter earnings as robust smartphone and TV business helped offset weak memory chip business.

Auto shares were mixed. Leading automaker Hyundai Motor shed 0.41 percent at 122,000 won, but its sister company Kia Motors inched up 0.59 percent to 42,550 won. Auto parts maker Hyundai Mobis remained flat at 238,000 won.

Naver, the nation’s portal operator, soared 6.15 percent to 164,000 won after the firm posted upbeat quarterly earnings and announced plans to expand its financial services to diversify its portfolio.

Mobile carrier SK Telecom increased 1.28 percent to 237,000 won as its earnings results showed lackluster net profit from equity losses from its chip-making subsidiary.

Refiner SK Innovation edged up 0.63 percent to 160,000 won after its third-quarter profits beat market expectations.

Posco increased 0.24 percent to 211,500 won.

The secondary Kosdaq dropped 3.48 points, or 0.53 percent, to close at 658.52.

The local currency closed at 1,163.4 won against dollar, down 4.7 won from Wednesday’s close.

Bond prices were traded in negative terrain. The yield on three-year bonds fell 2.2 basis points to 1.467 percent, and the yield on 10-year bonds dropped 6.1 basis points to 1.77 percent.

BY KIM BYUNG-WOOK, YONHAP [kim.byungwook@joongang.co.kr]


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