Stock rally ends as interest rates increased

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Stock rally ends as interest rates increased

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 3,128.53 points on Thursday, down 18.28 points, or 0.58 percent, from the previous trading day. [NEWS1]

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 3,128.53 points on Thursday, down 18.28 points, or 0.58 percent, from the previous trading day. [NEWS1]

 
Stocks ended a three-day winning streak Thursday as the central bank delivered its first pandemic-era rate hike. The  won fell against the dollar.
 
The benchmark Kospi retreated 18.28 points, or 0.58 percent, to close at 3,128.53 points.
 
Trading volume was moderate at about 719 million shares worth some 13.2 trillion won ($11.3 billion), with losers outnumbering gainers 488 to 349.
 
Foreigners sold a net 364 billion won, while retail investors bought 441 billion won. Institutions offloaded a net 82 billion won.
 
The Kospi got off to a solid start as investors expect the Fed not to hurry its timeline to roll back its stimulus amid surging new coronavirus cases.
 
Fed Chairman Jerome Powell is scheduled to deliver remarks Friday to the Fed's annual Jackson Hole gathering.
 
The Bank of Korea (BOK) delivered its first pandemic-era rate hike earlier in the day to control inflation and household debt, ending 15 months of record low interest rates, citing signs of an improving economic recovery.
 
"The BOK's rate hike seems more like a way of coping with the bubbles in the asset markets, inflation and foreign exchange, rather than a sign of an actual economic rebound," Samsung Securities analyst Kim Yong-koo said.
 
In Seoul, Samsung Electronics slumped 1.45 percent to 74,600 won, while chipmaker SK hynix increased 0.48 percent to 104,000 won.
 
Internet portal operator Naver declined 1.63 percent to 423,500 won, and its rival Kakao fell 0.99 percent to 149,500 won. 
 
Pharmaceutical firm Samsung Biologics lost 0.93 percent to 954,000 won, while Celltrion rose 0.89 percent to 284,500 won.
 
Automaker Hyundai Motor gained 0.24 percent to 210,000 won, but chemical firm LG Chem declined 1.38 percent to 788,000 won. KakaoBank advanced 1.58 percent to 83,400 won.
 
The Kosdaq gained 2.66 points, or 0.26 percent, to close at 1,020.44 points.
 
The local currency closed at 1,170.5 won against the dollar, up 2.4 won from the previous session's close.
 
Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds lost 3.8 basis points to 1.399 percent, and the yield on the benchmark 10-year government bond added 5.4 basis points to 1.34 percent.
 

BY LEE TAE-HEE, YONHAP [lee.taehee2@joongang.co.kr]
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