S.Korea stocks skid ahead of LGES IPO; rates outlook dents risk appetite

  • 1/17/2022
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KOSPI falls, foreigners net sellers Korean won weakens against U.S. dollar South Korea benchmark bond yield rises SEOUL, Jan 17 (Reuters) - Round-up of South Korean financial markets: ** South Korean shares fell on Monday, as traders reduced their positions ahead of the long-awaited LG Energy Solution"s $10.7 billion IPO and as possibilities of further monetary tightening dampened risk appetite. ** The Korean won weakened, while the benchmark bond yield rose. ** By 0305 GMT, the benchmark KOSPI (.KS11) fell 32.51 points, or 1.11%, to 2,889.41. ** Tech heavyweights led the decline, with chip giants Samsung Electronics (005930.KS) and SK Hynix (000660.KS) sliding 0.26% and 2.33%, respectively. ** South Korean battery maker LG Energy Solution (LGES) raised $10.8 billion in its initial public offering (IPO), attracting record demand for a deal in South Korea, while institutional investors placed bids valuing at record $12.8 trillion. read more ** The public subscription for retail investors will take place on Jan. 18 and 19. ** Hawkish signals from the Federal Reserve pushed the U.S. Treasury yields higher, while the Bank of Korea last week raised its policy rate to 1.25%, bringing it back to the pre-pandemic levels. read more ** Meanwhile, a slew of Chinese economic data confirming the deadening effect of coronavirus restrictions on consumer spending also weighed on sentiment. ** Foreigners were net sellers of 205.7 billion won ($172.47 million) worth of shares on the main board. ** The won was quoted at 1,192.7 per dollar on the onshore settlement platform , 0.45% lower than its previous close. ** In offshore trading, the won was quoted at 1,192.7 per dollar, down 0.2% from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,193.1. ** In money and debt markets, March futures on three-year treasury bonds fell 0.25 point to 108.10. ** The most liquid 3-year Korean treasury bond yield rose by 7.9 basis points to 2.125%, while the benchmark 10-year yield rose by 10.7 basis points to 2.560%. ($1 = 1,192.6400 won)

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