South Korean Financial Markets Update: Bank of Korea’s Policy Easing Pivot and Market Impact

2024-01-11 07:07:11

South Korean financial markets in brief:

** South Korean stocks were flat on Thursday as investors weighed the outcome of the central bank meeting that suggested a pivot toward policy easing.

**The won strengthened, while benchmark bond yields fell.

**The benchmark KOSPI index closed down 1.71 points, or 0.07%, at 2,540.27.

**The KOSPI rose as much as 0.60% following the outcome of the central bank meeting, but erased all that towards the end of the session. This is partly due to options expiration, which often increases volatility towards the end of the session.

** The Bank of Korea hinted it might move toward monetary easing with its global peers, following a widely expected decision to keep its key interest rate unchanged for an eighth meeting.

** “There was no big change in the monetary policy meeting from the stock market perspective and only a marginal impact,” said Na Jeong-hwan, an analyst with NH Investment Securities.

** Shares of chipmaker Samsung Electronics fell 0.54%, while Samsung SDS, Samsung Life Insurance and Samsung C&T ended down 3.21%, 3.24% and 1.78%, respectively .

** Local media reported on Wednesday that family members of Samsung Electronics Chairman Jay Lee planned to sell their stakes in the companies to raise funds to pay inheritance taxes.

** Instant messaging Kakao jumped 2.70%, while its financial subsidiaries Kakaopay and Kakaobank jumped 21.59% and 9.80%, respectively.

** Of the 939 stocks traded, 438 rose and 442 fell.

** Foreigners were net sellers of stocks worth 376.8 billion won ($287.06 million) on the main market.

** The won ended onshore trading at 1,312.9 per dollar, 0.55% higher than its previous close at 1,320.1.

** The yield on Korea’s most liquid three-year Treasury bonds fell 3.3 basis points to 3.236 percent, while the benchmark 10-year yield fell 3.5 basis points to 3.311 %. ($1 = 1,312.6000 won) (Reporting by Jihoon Lee; Editing by Mrigank Dhaniwala)

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