Stronger Korean won prompts sell-off
The Kospi shed 4.08 points, or 0.20 percent, to close at 2,074.57. Trade volume was moderate at 328 million shares worth 4.38 trillion won ($3.85 billion), with gainers outnumbering losers 462 to 342.
Steelmakers and automakers eked out gains, while some tech stocks, such as market bellwether Samsung Electronics, suffered losses.
“Despite overnight gains on Wall Street, buoyed by the Trump administration’s tax policy, the local stock market remained sluggish throughout the session,” said Lee Kyong-min, an analyst at Daishin Securities. “Foreign investors’ sell-offs and the strengthening Korean won are prompting investors to take to the sidelines.
The country’s top steelmaker Posco gained 1.44 percent to end at a yearly high of 282,500 won on expectations that its earnings may be backed by firm demand.
SK Hynix, the world’s second-largest memory chip producer, fell 4.44 percent to 48,450 won on bleak prospects for its bid to acquire Toshiba’s memory chip business.
Automakers remained in positive terrain. Auto industry leader Hyundai Motor advanced 0.36 percent to 140,000 won, and its sister automaker Kia Motors rose 0.27 percent to 37,000 won. Their automotive parts affiliate Hyundai Mobis advanced 2.06 percent.
The local currency closed at 1,137.40 won against the U.S. dollar, up 14.6 won from the previous trading day, marking the highest since Nov. 8 when the comparable figure was 1,135 won.
The won has been losing ground against the greenback since Donald Trump’s victory in the U.S. presidential election, but it has recently recouped part of its losses.
On Tuesday, exporters dumped the greenback ahead of Federal Reserve Chair Janet Yellen’s testimony to Congress for two days, a session that starts on Tuesday in the United States, according to market analysts.
BY SEO JI-EUN, YONHAP [seo.jieun@joongang.co.kr]
with the Korea JoongAng Daily
To write comments, please log in to one of the accounts.
Standards Board Policy (0/250자)