Stocks finish down as investors await hawkish Fed remarks
Published: 21 Jun. 2023, 17:28
The Kospi slipped 22.28 points, or 0.86 percent, to close at 2,582.63. The benchmark index closed below 2,600 for the first time in three weeks.
Trade volume was moderate at 644.16 million shares worth 10.21 trillion won ($7.9 billion), with decliners outnumbering gainers 678 to 207.
Retail investors scooped up a net 624.8 billion won worth of local shares, while foreign investors and institutions offloaded a net 611.4 billion won.
"As the rising momentum is limited in major economies like Korea and the U.S., stock markets are seeing some respite," analyst Han Ji-young at Kiwoom Securities said, expecting Fed Chair Jerome Powell to make hawkish remarks in front of Congress, which is likely to further dampen market sentiment.
Overnight, all three major U.S. equity indexes ended in negative territory, as Powell is set to make congressional testimony Wednesday and Thursday that might provide clues as to when and if the U.S. central bank will resume its monetary tightening campaign.
In Seoul, most large-cap stocks closed lower.
Samsung Electronics slid 1.26 percent to close at 70,500 won, and SK hynix shed 0.86 percent to 115,100 won.
LG Energy Solution lost 0.53 percent to 558,000 won, and Samsung SDI declined 1 percent to 695,000 won.
Posco Holdings fell 0.91 percent to 382,500 won, and LG Chem lost 2.17 percent to 723,000 won.
Multiplex chain CJ CGV plunged 21.1 percent to 11,440 on the news that it will issue new shares worth 570 billion won Tuesday.
Auto stocks gained ground, with Hyundai Motor rising 3.08 percent to 204,000 won and Kia adding 2.69 percent to 83,900 won.
LG Electronics climbed 1.05 percent to 125,000 won, and Hyundai Mobis gained 1.37 percent to 222,000 won.
The local currency ended at 1,292 won against the dollar, up 11.7 won from the previous session's close.
Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds advanced 1.1 basis points to 3.571 percent, and the yield on benchmark 10-year government bonds retreated 4.6 basis points to 3.721 percent.
BY SOHN DONG-JOO, YONHAP [sohn.dongjoo@joongang.co.kr]
with the Korea JoongAng Daily
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