November 26, 2019 / 7:44 AM / 18 days ago

S.Korean stocks inch down as foreigners offload equities over MSCI rebalancing

* KOSPI slides

* Foreigners were net sellers for 14th session

* Longest decline since late January 2016

* KRW inches down against USD South Korea benchmark bond yield falls

* For the midday report, please click

SEOUL, Nov 26 (Reuters) - Round-up of South Korean financial markets:

** South Korean shares inched down on Tuesday as foreigners sold equities over the rebalancing of MSCI index, capping earlier gains from optimism towards an interim trade deal between the United States and China. The Korean won edged down, while the benchmark bond yield also fell.

** The Seoul stock market’s main KOSPI closed down 2.15 points, or 0.10%, to 2,121.35.

** Foreigners were net sellers for a 14th session having sold 858.0 billion won ($727.53 million) worth of shares on the main board. This was the longest decline since late January 2016.

** Analysts saw the selloff of foreigners continuing because of the rebalancing of MSCI index, rather than external risks. “Though there were favourable news in the market to lift KOSPI today, foreigners extended their selloff over the rebalancing of MSCI index,” said Noh Dong-kil, an analyst at NH Investment & Securities.

** Earlier this month, global index provider MSCI said the mainland Chinese stocks, or A shares, will rise to a weight of 4.1% in the MSCI Emerging Market Index, up from 2.55% currently, which raised concerns over a weight decrease for South Korean shares.

** On Tuesday, China’s commerce ministry said Vice Premier Liu He, U.S. Trade representative Robert Lighthizer and U.S. Treasury Secretary Steven Mnuchin had a telephonic talk on issues related to a phase one trade agreement.

** Traders pointed to China’s decision to increase punishments for intellectual property rights violations as a fresh concession to the U.S. in the drawn-out and volatile negotiations.

** The won was quoted at 1,176.7 per dollar on the onshore settlement platform, 0.06% lower than its previous close at 1,176.0.

** In offshore trading, the won was quoted at 1,175.2 per U.S. dollar, down 0.2% from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,174.5 per dollar.

** MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.07%, after U.S. stocks rallied. . Japanese stocks rose 0.35%.

** The KOSPI has risen 3.93% so far this year, of which 2.7% of the gains came in the previous 30 trading sessions.

** The trading volume during the session in the KOSPI index was 524.31 million shares and, of the total traded issues of 906, the number of advancing shares was 532.

** The won has lost 5.2% against the dollar so far this year.

** In money and debt markets, December futures on three-year treasury bonds rose 0.02 points to 110.22, while the 3-month Certificate of Deposit rate was quoted at 1.53% in late afternoon trade.

** The most liquid 3-year Korean treasury bond yield rose by 0.2 basis points to 1.477% in late afternoon trade, while the benchmark 10-year yield fell by 1.6 basis points to 1.710%. ($1 = 1,179.3300 won) (Reporting by Joori Roh; Additional reporting by Hayoung Choi; Editing by Shailesh Kuber)

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