Shares fall for third session straight ahead of release of inflation data

Finance

Published: 09 Jun. 2022, 16:57 Updated: 09 Jun. 2022, 19:01

Shares fall for third session straight ahead of release of inflation data

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,625.44 points on Thursday, down 0.71 points, or 0.03 percent, from the previous trading day. [YONHAP]

Shares fell for a third straight session Thursday, largely as investors took to the sidelines ahead of the release of U.S. inflation data later this week and amid woes over an economic slowdown. The won fell against the dollar.

The benchmark Kospi retreated 0.71 points, or 0.03 percent, to close at 2,625.44 points.

Trading volume was moderate at about 806 million shares worth some 10.6 trillion won ($8.4 billion), with gainers outnumbering losers 591 to 272.

Institutions bought a net 530.7 billion won worth of stocks, and retail investors purchased a net 373.8 billion won, while foreigners dumped a net 949.8 billion won.

Stocks got off to a weak start, taking a cue from overnight Wall Street losses.

The Nasdaq composite retreated 0.73 percent and the Dow Jones Industrial Average declined 0.81 percent amid concerns that the Federal Reserve may push for more aggressive monetary policies if the May consumer price index, to be released Friday, remains high.

Also adding to investors' concerns is the growing possibility of stagflation as the growth outlook by the World Bank and the Organization for Economic Cooperation and Development (OECD) for major economies is being slashed.

"The concerns about slow growth and rising inflation are weighing down stock prices. The overall investor sentiment has become weaker," Yuanta Securities analyst Kang Dae-seok said.

In Seoul, Samsung Electronics slipped 0.15 percent to 65,200 won, and battery maker LG Energy Solution shed 0.71 percent to 422,500 won.

Hyundai Motor dropped 0.27 percent to 182,500 won, and chipmaker SK hynix decreased 0.47 percent to 105,500 won. Samsung Biologics retreated 2.05 percent to 811,000 won.

The local currency closed at 1,256.9 won against the dollar, up 3.1 won from the previous session's close.

The Kosdaq gained 2.23 points, or 0.25 percent, to close at 877.18 points.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds dropped 2.1 basis points to 3.193 percent, and the yield on the benchmark 10-year government bond gained 3.9 basis points to 3.01 percent.

BY LIM JEONG-WON, YONHAP [lim.jeongwon@joongang.co.kr]