Korean stocks rise on Monday, led by construction and tech companies



A screen in the Hana Bank trading floor in central Seoul shows the Kospi closing at 2,236.16 points on Monday, up 23.04 points, or 1.04%, from the previous trading day. [YONHAP]

Shares rose on Monday to end their three-day losing streak, with construction and technology companies leading the rally, as the government’s 50 trillion won ($35 billion) liquidity support plan Korea eased concerns about growing credit crunch risks.

The local currency finished almost flat against the dollar.

The Kospi rose 23.04 points, or 1.04%, to close at 2,236.16. Trading volume moderated at 434 million shares worth 6.76 trillion won, with winners outnumbering decliners by 622 to 246.

On Sunday, financial authorities said they would expand liquidity-providing programs to at least 50 trillion won to calm a corporate bond market unnerved by a park developer’s debt default. attractions in Gangwon.

The non-repayment of 205 billion won in debt rattled the market as many institutional investors bought the asset-backed commercial paper issued by the developer, Gangwon Jungdo Development, which is 44% owned by the province.

Analysts said recent comments from Fed officials on the need to slow the pace of interest rate hikes also boosted investor sentiment.

The market is widely pricing in another 0.75 percentage point rate hike by the Fed in December.

The liquidity support expansion plan prompted construction companies to rally to Seoul, with Hyundai Engineering & Construction jumping 2.3% to 34,950 won and GS Engineering & Construction jumping 3.5% to 22,450 won. .

Samsung Electronics closed up 2.86% at 57,500 won.

Posco Chemical jumped 4% to 194,500 won after reporting its biggest ever quarterly operating profit in the third quarter.

By contrast, Hyundai Motor fell 3.3% after reporting a drop in third-quarter net profit, due to massive provisions for after-sales services involving the Theta II engine.

The local currency finished at 1,439.70 won against the dollar, down 0.1 won from Friday’s close.

The Kosdaq gained 14.02 points, or 2.08%, to close at 688.50 points.

Bond prices, which move inversely to yields, closed higher. The three-year government bond yield fell 19.6 basis points to 4.299%, and the 10-year government bond yield fell 17.0 basis points to 4.485%.

BY LIM JEONG-WON, YONHAP [[email protected]]

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