Stocks close flat from uncertainties with U.S. debt ceiling

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Stocks close flat from uncertainties with U.S. debt ceiling

Published: 24 May. 2023, 17:21 Updated: 24 May. 2023, 19:17

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,567.45 points on Wednesday, down 0.0 percent, or 0.10 points, from the previous trading day. [YONHAP]

Stocks ended nearly flat after a seven-day rise Wednesday, as uncertainties linger over talks on the United States' debt ceiling to avoid a federal default. The won fell against the dollar.

The Kospi shed 0.10 points, or 0.0 percent, to close at 2,567.45. Trading volume was moderate at 1.06 billion shares worth 7.7 trillion won ($5.9 billion), with losers outpacing gainers 460 to 397.

Institutions sold a net 185.5 billion won worth of shares, while retail and foreign investors bought a net 132.1 billion won and 94.2 billion won worth of shares, respectively.

The index opened slightly lower and moved within a tight range before ending unchanged.

U.S. President Joe Biden and House Speaker Kevin McCarthy said late Monday that they had productive talks, but no agreement has been made.

"Investor sentiment remained fragile as fears about the negotiation have spread further and strong U.S. manufacturing activity data raised concerns about further interest rate hikes," said Kiwoom Securities analyst Han Ji-young.

U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, rose to a 13-month high in May, according to foreign media reports, igniting concerns that the Federal Reserve would continue its interest rate hike cycle.

In Seoul, top-cap shares traded mixed.

Samsung Electronics rose 0.15 percent to 68,500 won, while SK hynix inched down 0.20 percent to 97,700 won.

LG Energy Solution surged 1.92 percent to 585,000 won, and LG Chem added 0.14 percent to 720,000 won.

Hyundai Motor remained unchanged at 207,500 won, and Kia increased 0.45 percent to 89,100 won.

Posco Holdings sank 1.59 percent to 371,000 won, and Posco Future M remained unchanged at 333,500 won.

Naver sank 4.25 percent to 203,000 won from the news that China has blocked the portal website.

The local currency ended at 1,317.4 won against the dollar, up 4.7 won from the previous session's close.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds climbed 0.2 basis points to 3.371 percent, and the yield on the benchmark 10-year government bonds shed 1.4 basis points to 3.699 percent.

BY SOHN DONG-JOO, YONHAP [sohn.dongjoo@joongang.co.kr]