Stocks finish down Thursday as concerns persist about global recession

Finance

Stocks finish down Thursday as concerns persist about global recession

Published: 13 Oct. 2022, 16:52 Updated: 13 Oct. 2022, 19:22

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,162.87 points on Thursday, down 39.60 points, or 1.80 percent, from the previous trading day. [YONHAP]

Stocks finished down Thursday amid persistent concerns that combative monetary tightening policies in major economies could drag the global economy into a recession. The local currency lost ground against the dollar.

The benchmark Kospi shed 39.60 points, or 1.8 percent, to end at 2,162.87.

Trading volume was moderate at 781 million shares worth 6.96 trillion won ($4.86 billion), with losers far outpacing gainers 842 to 73.

Institutions offloaded a net 299.6 billion won worth of shares, while foreign investors bought a net 192.4 billion won worth of shares and retail investors a net 80.6 billion won.

The market opened lower and extended losses as investors awaited the release of the September consumer price index, one of the key indicators that determines the pace of the U.S. Federal Reserve's monetary policy tightening going forward.

Minutes from the Fed's September meeting, out Wednesday, confirmed its hawkish stance on rate hikes until hot inflation is brought under control.

In Seoul, most big-cap shares ended lower.

Samsung Electronics shed 1.08 percent to end at 55,200 won, while SK hynix gained 0.96 percent to 94,900 won.

Automaker Hyundai Motor lost 2.08 percent to 164,500 won, while its affiliate Kia gained 0.15 percent to 68,300 won.

Chemical firm LG Chem lost 2.71 percent to end at 575,000 won, and battery maker LG Energy Solution lost 1.24 percent to close at 477,000 won. Kakao dropped 5.12 percent to 47,300 won and Naver also fell 2.16 percent to 158,500 won.

Bio shares closed mixed. Samsung Biologics fell 1.59 percent to 807,000 won, while Celltrion gained 0.30 percent to 165,000 won.

The won finished at 1,431.30 won against the greenback, up 6.4 won from the previous session's close.

The Kosdaq lost 20.08 points, or 2.99 percent, to close at 651.59 points.

Bond prices, which move inversely to yields, closed lower. The yield on three-year government bonds gained 9.4 basis points to 4.203 percent, and the yield on 10-year government bonds advanced 12.9 basis points to 4.246 percent.

BY CHO JUNG-WOO, YONHAP [cho.jungwoo1@joongang.co.kr]