Shares close lower amid worries over Middle East war

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Shares close lower amid worries over Middle East war

Published: 10 Oct. 2023, 19:11

KIM JI-YE
[email protected]

Screens in Hana Bank's trading room in central Seoul show the Kospi closing at 2,402.58 points on Tuesday, down 0.3 percent, or 6.15 points, from the previous trading session. [NEWS1]

Shares closed lower Tuesday as investors remain cautious due to the Israel-Hamas conflict. The won rose against the dollar.

The Kospi fell 6.15 points, or 0.3 percent, to close at 2,402.58. The Kospi opened higher, tracking gains on Wall Street, boosted by Federal Reserve officials' dovish rate comments.

The Kosdaq plunged 21.39 points, or 2.62 percent, to close at 795.00.

Trading volume was moderate at 410.31 million shares worth 9.3 trillion won ($6.9 billion), with losers outpacing gainers 626 to 259.

The Dow Jones Industrial Average rose 0.6 percent to 33,604.65 overnight, and the Nasdaq composite gained 0.4 percent to 13,484.24.

Market watchers have expected another rate hike this year due to higher-than-expected U.S. employment data in September, but the U.S. Korean central bank said the odds for further tightening have dropped dramatically amid the Israel-Hamas conflict.

Analysts said that Investors are watching the military clash between Israel and the Palestinian militant group Hamas.

Hamas made a surprise attack on Israel on Saturday, killing hundreds of Israelis.

Institutions bought a net 587.38 billion won worth of stocks, offsetting foreigners' and individuals' stock selling valued at 585 billion won.

In Seoul, large-cap stocks traded mixed across the board.

Samsung Electronics Co. rose 0.6 percent to 66,400 won, LG Electronics Inc. jumped 7 percent to 105,100 won, and SK Telecom Co. gained 2.2 percent to 49,400 won.

Oil stocks showed a rise due to the Israel-Hamas conflict.

Korea Petroleum jumped 29.93 percent, and Kukdong Oil and Chemicals 26.10 percent.

Among decliners, Hyundai Motor Co. fell 2 percent to 188,400 won, Korean Air Co. declined 2.6 percent to 20,500 won, and KG Mobility, formerly known as SsangYong Motor Co., shed 3.3 percent to 6,010 won.

The local currency ended at 1,349.50 won against the greenback, down 0.4 won from the previous session's close.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds fell 2.3 basis points to 3.99 percent, and the return on the benchmark U.S. 10-year government bonds added 9.6 basis points to 4.80 percent.

BY KIM JI-YE, YONHAP [[email protected]]