South Korean shares end down on institutional sell-off

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KOSPI falls, foreign net buyers

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The Korean rebound weakens against the dollar

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Benchmark South Korean bond yields rise

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For the midday report, please click

SEOUL, Jan 2 (Reuters) – South Korean financial markets round up:

** South Korean shares reversed early gains to end the first session of 2023 lower, dragged down by institutional selling in relatively thin trading. The win weakened, while benchmark bond yields rose.

** The benchmark KOSPI ended down 10.72 points, or 0.48%, at 2,225.68, after rising as much as 1.05%, led by electric vehicle (EV) stocks.

** The index closed at its lowest level since 20 October 2022 and extended its losing streak for the third consecutive session.

** “The market rejected the sale of institutional investors due to the seasonal factor of rebalancing at the beginning of a new year,” said Seo Sang-young, an analyst at Mirae Asset Securities.

** “With most stock markets closed across major countries, trading was also thin in the local market.”

** Institutional investors were net sellers of shares worth 264.4 billion won ($207.83 million), while foreigners bought a net 8.5 billion won in stocks.

** Automakers and battery makers jumped as U.S. guidance on electric vehicle tax credits released last week appeared to reduce the downside of -South Korean companies related to the Inflation Reduction Act.

** Most airline, hotel and travel agency stocks fell after South Korea’s announcement of measures to restrict travelers from China . Cosmetics stocks also fell as they make up a large part of visitors’ shopping carts.

** Korea Electric Power Corp fell 11.24% and recorded its biggest daily loss since late October 2008, with analysts saying South Korea’s decision to raise electricity prices by nearly 10% did not meet their expectations.

** Only 177 shares acquired among 927 traded issues.

** The won ended trading on the ground at 1,272.6 per dollar, 0.64% lower than its previous close.

** In the money and debt markets, March futures on three-year treasury bonds fell 0.12 point to 103.33.

** The most liquid three-year Korean treasury bond yield rose 5.8 basis points to 3.783%, while the benchmark 10-year yield rose 7.8 basis points to 3.813%. ($1 = 1,272.2000 won) (Reporting by Jihoon Lee Editing by Vinay Dwivedi)

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