Stocks continue retreat following Wall Street rout on rates

Home > Business > Finance

Stocks continue retreat following Wall Street rout on rates

Published: 19 Jan. 2022, 17:48

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,842.28 points on Wednesday, down 21.96 points, or 0.77 percent, from the previous trading day. [YONHAP]

Stocks extended their losing streak to a fifth consecutive session Wednesday as rising U.S. yields and rate hikes forecast weighed on investor sentiment. The won fell against the dollar.

After a choppy session, the benchmark Kospi declined 21.96 points, or 0.77 percent, to close at 2,842.28 points.

Trading volume was moderate at about 457 million shares worth some 9.6 trillion won ($8.1 billion), with losers far outnumbering gainers 653 to 230.

Institutions and retail investors offloaded a net 45 billion won and 292 billion, respectively, while foreigners scooped up 270 billion won.

The local exchange start weak, tracking an overnight plunge on Wall Street amid heightened expectations of a rate hike by the Federal Reserve.

The market remained volatile on the IPO subscription for battery maker LG Energy Solution. The firm's listing is set for Jan. 27.

"The U.S. market closed lower as rising treasury bonds sapped investor appetite for risky assets," Seo Sang-young, an analyst at Mirae Asset Securities said.

Most large caps closed lower.

Samsung Electronics lost 0.91 percent to 76,300 won, while chipmaker SK hynix inched up 0.4 percent to 127,000 won.

Internet portal operator Naver retreated 1.63 percent to 332,500 won, and chemical firm LG Chem plunged 5.91 percent to 653,000 won. Kakao lost 1.74 percent to 90,400 won.

Carmaker Hyundai Motor dropped 0.99 percent to 200,500 won, and Kia lost 1.46 percent to 81,000 won.

Bio shares, meanwhile, closed higher. Samsung Biologics added 1.24 percent to 816,000 won, and Celltrion added 4.7 percent to 167,000 won.

The local currency closed at 1,191.7 won against the dollar, up 1.6 won from the previous session's close.

The Kosdaq lost 10.04 points, or 1.06 percent, to close at 933.90.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds lost 5.4 basis points to 2.073 percent, and the yield on the benchmark 10-year government bond rose 8.4 basis points to 1.87 percent.

BY SHIN HA-NEE, YON HAP [shin.hanee@joongang.co.kr]