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Kospi down 16 points as winning streak ends

Aug 14,2019
Seoul stocks closed lower Tuesday, ending a three-day winning streak, amid growing trade tension between the United States and China and geopolitical risks around the globe, including the large-scale protests in Hong Kong.

The won depreciated against the dollar.

The benchmark Kospi fell 16.46 points, or 0.85 percent, to 1,925.83. Trading volume was moderate at 646 million shares worth 4.22 trillion won ($3.4 billion).

Investor sentiment was spooked by the mounting trade war between the world’s two largest economies.

Major indices dropped more than 1 percent in the U.S. on Monday due to growing fears that the American-Sino trade feud could turn the economic slowdown to a recession. Goldman Sachs said it no longer expects a trade deal before the 2020 U.S. presidential election.

“The trade row is definitely negative for the Korean market that relies on exports,” said Seo Sang-young, an analyst at Kiwoom Securities.

Analysts said emerging geopolitical risks, such as pro-democracy protests in Hong Kong that led to an airport shutdown, as well as primary election results in Argentina that triggered a massive sell-off in the peso, also appear to have dampened investor sentiment.

Individuals bought a net 156 billion won worth of shares, and foreign investors sold a net 174.8 billion won worth. Institutions sold a net 4 billion won of stocks.

Most large-cap stocks fell across the board.

Samsung Electronics dipped 1.6 percent to 43,000 won, while LG Electronics shed 1.16 percent to 59,800 won. No. 2 chipmaker SK Hynix stayed flat at 74,500 won.

Auto shares were weak. No. 1 automaker Hyundai Motor decreased 1.53 percent to 129,000 won, while its auto parts-making affiliate Hyundai Mobis slid 1.47 percent to 235,000 won. Kia Motors remained unchanged at 43,750 won.

Posco, Korea’s top steelmaker, dropped 1.44 percent to 205,500 won.

The Kosdaq fell 3.42 points, or 0.58 percent, to end the session at 590.75. The tech-heavy index was dragged down by foreign and institutional selling of pharmaceutical shares and a 1.2 percent fall in Nasdaq Index overnight.

The won closed at 1,222.20 won against the dollar, up 6.00 won from the previous session.

Bond prices, which move inversely to yields, ended higher. The yield on three-year bonds fell 3.2 basis points to 1.15 percent. The yield on 10-year bonds fell 5.6 basis points to 1.23 percent.

BY KIM HE-YU, YONHAP [kim.heyu@joongang.co.kr]


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