Kospi ends 6-day losing streak, won drops to 9-month low

Home > Business > Finance

Kospi ends 6-day losing streak, won drops to 9-month low

Published: 21 Aug. 2023, 17:18 Updated: 21 Aug. 2023, 17:38

Screens in Hana Bank's trading room in central Seoul show the Kospi closing at 2,508.8 points on Monday, up 0.17 percent, or 4.3 points, from the previous trading session. [YONHAP]

Stocks closed higher after six straight sessions of losses Monday after China's rate cut eased fears over the country's economy. The won fell against the dollar to close at the lowest level since Nov. 23.

The benchmark Kospi gained 4.3 points, or 0.17 percent, to finish at 2,508.8.

Trading volume was slim at 393.37 million shares worth 8.39 trillion won ($6.24 billion), with gainers slightly outnumbering losers 456 to 434. Institutions bought a net 25.98 billion won worth of shares, while offshore and retail investors sold a net 33.76 billion won and 10.9 billion won worth of shares, respectively.

Earlier in the day, China slashed its one-year loan prime rate by 10 basis points from 3.55 percent to 3.45 percent. The move was aimed at propping up its economy and soothing market concerns over its ailing property sector sparked by China's heavily indebted property developer Evergrande Group.

Concerns remain over a possible rate hike push by the U.S. Federal Reserve, which is set to hold its annual Jackson Hole symposium later this week to discuss the direction of rate hikes.

"Strong market momentum is missing this week, as the local market will just follow the Jackson Hall meeting and China's real estate market conditions," Eugene Investment and Securities analyst Huh Jae-hwan said.

In Seoul, most large-cap shares closed mixed.

Samsung Electronics added 0.45 percent to close at 66,600 won, while SK hynix shed 0.68 percent to 116,400 won.

LG Energy Solution declined 0.57 percent to 526,000 won and Samsung SDI lost 1.17 percent to 590,000 won.

Samsung Biologics climbed 0.91 percent to 778,000 won but Celltrion dropped 3.52 percent to 145,100 won.

Hyundai Motor closed flat at 186,100 won and Kia went down 0.38 percent to 78,100 won.

The local currency ended at 1,342.6 won against the dollar, up 4.3 won from the previous session's close.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds rose 6.7 basis points to 3.799 percent, and the yield on the benchmark 10-year government bonds fell 3.1 basis points to 4.251 percent.

BY SOHN DONG-JOO, YONHAP [[email protected]]