Kospi extends losing streak to fifth day to hit 3-month low

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Kospi extends losing streak to fifth day to hit 3-month low

Published: 17 Aug. 2023, 16:39 Updated: 17 Aug. 2023, 16:43

Screens in Hana Bank's trading room in central Seoul show the Kospi closing at 2,519.85 points on Thursday, down 0.23 percent, or 5.79 points, from the previous trading session. [YONHAP]

Stocks closed lower for a fifth straight day, hitting a three-month low Thursday as concerns linger over the U.S. Federal Reserve's continued rate hikes and the liquidity crunch in China's housing market. The won fell against the dollar.

The Kospi shed 5.79 points, or 0.23 percent, to close at 2,519.85, the lowest point since May 18. The index dropped nearly 2 percent in the first 30 minutes after the bell but pared down losses with steel and battery gains.

Trading volume was moderate at 725.27 million shares worth 10.57 trillion won ($7.87 billion), with losers outpacing gainers 646 to 238. Institutions sold a net 97.83 billion won, while retail and foreign investors bought a net 85.11 billion won and 10 million won worth of shares, respectively.

"Investors are becoming risk-averse over concerns about China's property sector and the broader economy. A weaker won also made domestic shares less attractive," NH Investment & Securities analyst Kim Byung-yeon said.

The focus is now turning to developments in China's real estate sector following property giant Country Garden's debt problems, which could impact the country's already faltering economic recovery.

Investors were also digesting the Fed's policy path after the minutes from its July meeting indicated a need for further rate hikes.

In Seoul, large-cap stocks traded mixed.

Samsung Electronics fell 0.45 percent to 66,700 won and SK hynix lost 0.86 percent to 114,800 won.

Samsung Biologics went down 1.15 percent to 772,000 won and LG Chem tumbled 2.18 percent to 584,000 won.

But LG Energy Solution soared 2.65 percent to 540,000 won and Samsung SDI advanced 1.16 percent to 608,000 won.

Posco Holdings increased 1.28 percent to 553,000 won and Posco Future M jumped 3.41 percent to 424,500 won.

The local currency ended at 1,342 won against the dollar, up 5.1 won from the previous session's close.

Bond prices, which move inversely to yields, closed lower. The yield on three-year government bonds rose 7.4 basis points to 3.791 percent, and the yield on the benchmark 10-year government bonds advanced 3.8 basis points to 4.254 percent.

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