Shares stumble after short selling ban
Published: 08 Nov. 2023, 16:46
- KIM JU-YEON
- kim.juyeon2@joongang.co.kr
Shares ended lower Wednesday amid lingering woes over the country's ban on short selling. The local currency gained ground against the dollar.
The Kospi fell 22.34 points, or 0.91 percent, to close at 2,421.62 after choppy trading.
Trading volume was moderate at 461.3 million shares worth 7.54 trillion won ($5.75 billion), with losers outnumbering gainers 498 to 378.
After opening higher, the Kospi climbed nearly 1 percent in line with overnight Wall Street gains but soon lost ground due to a selling spree by foreign and retail investors.
Market watchers cited increased market uncertainty from the short selling ban announced unexpectedly on Sunday.
The Kospi, buoyed by the short selling ban, logged its largest-ever daily gain of 134.03 points, or 5.66 percent, on Monday. It fell 2.33 percent a day later as investors sold shares to profit from steep gains.
“Expectations and disappointments surrounding the ban on short selling have continued to cause ups and downs. As a result, the domestic stock market will likely continue its volatile trends due to supply concerns particularly focused on secondary battery-related companies,” Han Ji-young, an analyst at Kiwoom Securities, said.
Han advised investors to remain cautious against market volatility for the rest of the week.
Battery stocks took heavy beatings. LG Energy Solution slid 1.24 percent to 437,500 won and Samsung SDI tumbled 3.43 percent to 450,000 won.
Tech and chemical shares also lost ground. Samsung Electronics shed 1.41 percent to finish at 69,900 won, and LG Chem slumped 2.85 percent to 478,000 won.
Steel and automakers also suffered losses. Posco Holdings dropped 1.72 percent to 456,500 won, and Hyundai Motor and Kia slipped 0.74 percent and 0.65 percent to 174,800 won and 77,000 won, respectively.
Bio-related stocks fared better. SK bioscience climbed 1.48 percent to 68,400 won and Celltrion advanced 1.22 percent to 157,500 won.
The local currency ended at 1,310.60 won against the dollar, up 2.70 won from the previous session's close.
Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds fell 2.3 points to 3.87 percent, and the return on the benchmark U.S. 10-year government bond dropped 4.4 points to 4.01 percent.
BY KIM JU-YEON, YONHAP [kim.juyeon2@joongang.co.kr]
with the Korea JoongAng Daily
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