Stocks slide as investors await Fed meeting

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Stocks slide as investors await Fed meeting

Published: 31 Oct. 2023, 17:40 Updated: 31 Oct. 2023, 17:43

KIM JU-YEON
[email protected]

Screens in Hana Bank's trading room in central Seoul show the Kospi closing at 2,277.99 points on Tuesday, down 1.41 percent, or 32.56 points, from the previous trading session. [YONHAP]

Shares slid to the lowest point since early January on Tuesday as investors awaited the Federal Reserve's policy meeting, which is set for later this week. The local currency rose against the dollar.

The Kospi fell by 32.56 points, or 1.41 percent, to close at 2,277.99, marking the lowest point since Jan. 5, when the Kospi finished at 2,264.65.

Trading volume was moderate at 387.6 million shares worth 8 trillion won ($5.95 billion), with losers outnumbering gainers 639 to 252.

Amid expectations that the Fed will hold its key rates steady this week, investors sat on the sidelines and awaited hints from Federal Reserve Chairman Jerome Powell on the bank's future policy direction.

“Investors focused on various events during the session, including Samsung's conference call and China's manufacturing and service data,” said Kim Seok-hwan, an analyst at Mirae Asset Securities.

Foreigners dumped a net 324 billion won worth of local shares, while individuals bought shares worth 341 billion won. Institutions offloaded 69 billion won.

Samsung Electronics fell 0.59 percent to 66,900 won as its operating profit sank nearly 80 percent in the third quarter, despite its semiconductor business managing to reduce losses.

Battery makers plunged due to Tesla's overnight slump, with LG Energy Solution dropping by 4.81 percent to 385,500 won and Samsung SDI losing 5.86 percent to 425,500 won.

Steelmakers finished bearish as well, with Posco Holdings falling 4.97 percent to 411,500 won and Korea Zinc falling 4.29 percent to 469,000 won.

Hyundai dropped 1.62 percent to 169,700 won and Kia dropped 1.54 percent to 76,900 won.

Cosmetic firms gathered ground on reports that the prices of their products would rise, with AmorePacific soaring 11.07 percent to 126,400 won and LG Household & Health Care adding 1.45 percent to 315,500 won.

The local currency ended at 1,350.50 won against the dollar, 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 0.9 points to 4.09 percent, and the return on the benchmark U.S. 10-year government bond rose 5.4 points to 4.89 percent.

BY KIM JU-YEON, YONHAP [[email protected]]