Stocks extend losing streak ahead of Fed's interest rate decision

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,447.38 points on Wednesday, down 45.59 points, or 1.83 percent, from the previous trading day. [YONHAP]

Stocks sank to a fresh 19-month low Wednesday to extend their losing streak to a seventh day ahead of the U.S. Federal Reserve's interest rate decision amid high inflation and concerns over a global recession. The local currency also fell against the dollar.

The Kospi lost 45.59 points, or 1.83 percent, to close at 2,447.38. It is the lowest figure since Nov. 10, 2020, when the index closed at 2,452.83.

Trading volume was moderate at 700.92 million shares worth 9.80 trillion won ($7.59 billion), with decliners far outpacing gainers 812 to 86.

The market opened a tad lower after Wall Street ended mixed but had extended losses on heavy foreign sell-offs.

Foreign investors sold a net 454.3 billion won worth of shares, while individuals bought a net 346.3 billion won and institutions bought a net 73.4 billion won worth of shares.

Investors remained wary of the result of the Federal Reserve's two-day interest rate-setting meeting set to end Wednesday amid the prospect that the U.S. central bank would raise the key rate by 75 basis points to tame the surging inflation.

In Seoul, most shares traded lower.

Samsung Electronics fell 1.94 percent to 60,700 won, and chipmaker SK hynix lost 1.21 percent to 97,900 won.

LG Energy Solution tumbled 1.52 percent to 420,000 won, and LG Chem went down 0.53 percent to 561,000 won.

Among decliners, HYBE dived 24.87 percent to 145,000 won, after BTS announced an unexpected decision to suspend group projects.

Hyundai Motor rose 1.46 percent to 174,000 won, and Kia inched up 0.13 percent to 78,100 won.

Kakao Bank gained 1.27 percent to 35,800 won, and Samsung Life Insurance jumped 2.51 percent to 65,400 won.

The local currency ended at 1,290.5 won against the dollar, up 4.1 won from the previous session's close.

The Kosdaq lost 24.17 points, or 2.93 percent, to close at 799.41 points.

Bond prices, which move inversely to yields, closed lower. The yield on three-year government bonds gained 12.9 basis points to 3.674 percent, and the yield on the benchmark 10-year government bond gained 11.6 basis points to 3.47 percent.

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