South Korean shares fall on profit taking; BOK in focus

By SEOUL: Round-up of South Korean financial markets: South Korean shares fell more than 1% on Thursday on profit-taking pressure in the chip sector, while investors' focus was on the Bank of Korea's policy meeting for clues on the growth and policy outlook. The benchmark KOSPI was down 66.34 points, or 1.16%, at 5,669.32 as of 0126 GMT. On Wednesday, the index rose 3.3%, marking the biggest daily gain in six weeks on a rebound in chipmakers. 'The market is seen in volatile trading on profit-taking pressure after the previous session's sharp gains,' said Han Ji-young, an analyst at Kiwoom Securities. The Bank of Korea left its benchmark interest rate unchanged, pausing after back-to-back quarter-point hikes in July and August, although strong chip-driven growth and above-target inflation keep the option of further tightening open. Investors await Bank of Korea Governor Shin Hyun Song's press conference due to be held at 0210 GMT for clues on further increases in interest rates and the outlook for chip-led economic growth. Chipmaker Samsung Electronics fell 1.34%, while peer SK Hynix lost 1.93%. Among other index heavyweights, battery maker LG Energy Solution slid 3.77%, while Hyundai Motor and sister automaker Kia Corp were down 2.58% and 1.18%, respectively. Of the total 910 traded issues, 322 shares advanced, while 528 declined. Foreigners were net buyers of shares worth 107.4 billion won ($80.97 million). The won was quoted at 1,326.2 per dollar on the onshore settlement platform, 0.02% lower than its previous close at 1,326.0. In money and debt markets, December futures on three-year treasury bonds gained 0.05 point to 103.19. The most liquid three-year Korean treasury bond yield fell by 3.3 basis points to 3.799%, while the benchmark 10-year yield fell by 3.1 basis points to 4.136%.‑Reuters