Home Stock & Shares South Korea shares fall over recovery package uncertainty

South Korea shares fall over recovery package uncertainty

by Jonathan Adams
South Korea shares

Foreigners were net sellers of $0.11 billion worth of shares on the main board

South Korean shares fell on Monday as investors worried about deadlocked talks in Europe over a recovery package to help economies ride out the fallout of the COVID-19 pandemic. The Korean won strengthened, while the benchmark bond yield fell.

As of 0248 GMT, the Seoul stock market’s main KOSPI was down 7.09 points, or 0.32%, at 2,194.10.

A delay by European Union leaders to put together a recovery package and uncertainty over more fiscal stimulus in the United States hurt investor sentiment, said Seo Sang-young, an analyst at Kiwoom Securities.

EU leaders stood at an impasse on Sunday after three days of haggling over a plan to revive economies throttled by the COVID-19 pandemic, but the chairman of their near-record-length summit urged them to make one last push on “mission impossible”.

Foreigners were net sellers of 133.9 billion ($0.11 billion) won worth of shares on the main board.

Shares of internet service provider Naver and messenger app operator Kakao dropped 4.3% and 4.1%, respectively. Market heavyweight Samsung Electronics declined 0.37%.

The won was quoted at 1,204.2 per dollar on the onshore settlement platform, 0.07% higher than its previous close at 1,205.1.

In offshore trading, the won was quoted at 1,204.2 per U.S. dollar, down 0.1% from the previous session, while in non-deliverable forward trading its one-month contract was quoted at 1,203.7 per dollar.

MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.07%, after the Dow fell 0.23% on Friday. Japanese stocks slipped 0.35%.

The KOSPI dropped 0.16% so far this year, but gained 0.9% in the previous 30 trading sessions.

The trading volume during the session in the KOSPI index was 359.65 million shares. Of the total traded issues of 901, the number of advancing shares was 287.

The won weakened 4% against the dollar so far this year.

In money and debt markets, September futures on three-year treasury bonds rose 0.03 points to 112.18.

The most liquid 3-year Korean treasury bond yield fell by 0.5 basis points to 0.807% in early trade.

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