Friday, 20 March 2015 13:01
SEOUL: South Korean shares edged down 0.3 percent by midday on Friday but were poised to score their best week in two months, helped by belief US interest rate hikes will begin later than previously thought.
The benchmark Korea Composite Stock Price Index (KOSPI) fell to 2,031.95 points as of 0305 GMT from Thursday’s close at 2,037.89.
The index was up nearly 2.5 percent for this week, on track for its biggest gain since the week ended Jan. 23.
The pharmaceutical sector rose 4.1 percent on Friday, with Hanmi Pharmaceutical Co Ltd soaring 14.4 percent after it formed an exclusive license deal with Eli Lilly and Co, valued at up to $ 640 million.
“Investors are betting on pharmaceutical companies on hopes that their long investment and effort made in the past will soon begin paying off and boost profits,” said Jung Bo-ra, an analyst at Dongbu Securities.
But their rally was more than offset by profit-taking on other shares after the rally earlier this week, rooted in hopes South Korean stocks will continue to benefit from ample global liquidity.
At midday, foreigners were net buyers of 70.6 billion won ($ 63 million) of shares on the main board. They have been net buyers the past five sessions.
On the currency market, the won slid 0.3 percent to 1,120.5 against the dollar as of 0305 GMT, hit by the dollar’s rebound in global trade against major currencies on Thursday. The won’s previous close was 1,117.2.
June futures on three-year treasury bonds added 0.05 points to 109.18 by 0305 GMT.
Copyright Reuters, 2015
