Kospi continues losing streak ahead of U.S. economic data

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Kospi continues losing streak ahead of U.S. economic data

Published: 07 Aug. 2023, 16:39 Updated: 07 Aug. 2023, 18:22

Screens in Hana Bank's trading room in central Seoul show the Kospi closing at 2,580.71 points on Monday, down 0.85 percent, or 22.09 points, from the previous trading session. [YONHAP]

Stocks closed lower Monday to extend its losing streak to a fourth day, as investors await the U.S. consumer price data announcement set for later in the week. The won rose against the dollar.

The Kospi dropped 22.09 points, or 0.85 percent, to 2,580.71. Trading volume was slim at 497.1 million shares worth 11.8 trillion won ($9 billion), with losers outnumbering winners 519 to 360.

Institutions unloaded a net 330.8 billion won worth of local shares, outnumbering a combined 313.8 billion won purchased by foreigners and individuals.

Analysts pointed to this week's economic calendar with the U.S. consumer price index for July slated for Thursday, which will be an indicator for the Federal Reserve's rate setting.

"Kospi appears to have no clear direction as it did last week," said Shinhan Investment analyst Choi Yu-joon. "Investors are waiting for the key price data. The July CPI is expected to beat the market expectation, while global oil prices are rising sharply to a yearly high."

In Seoul, battery stocks drove the Kospi down.

LG Energy Solution sank 4.81 percent to 514,000 won and Posco Future M tumbled 8.64 percent to 439,000 won.

SK Innovation plunged 5.22 percent to 192,400 won and LG Chem lost 3.3 percent to 615,000 won.

Carmakers also fell, with Hyundai Motor retreating 2.19 percent to 188,000 won and Kia going down 3.72 percent to 77,600 won.

But chipmakers were bullish. Samsung Electronics rose 0.29 percent to 68,500 won, SK hynix advanced 1.5 percent to 121,900 won.

Naver soared 4.92 percent to 234,500 won and Kakao climbed 1.74 percent to 52,700 won.

The local currency ended at 1,306.2 won against the dollar, down 3.6 won from the previous session's close.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds shed 5.3 basis points to 3.687 percent, and the yield on the benchmark 10-year government bonds dropped 13.3 basis points to 4.044 percent.

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