Kospi drops 0.84% as investors cash out on rally

Screens in Hana Bank's trading room in central Seoul show the Kospi closing at 2657.79 points on Tuesday, down 0.84 percent, or 22.47 points, from the previous trading session. [YONHAP]

Stocks finished sharply lower Tuesday as investors locked in gains after a recent rally, as the local currency also fell against dollar.

The Kospi lost 22.47 points, or 0.84 percent, to close at 2,657.79, ending a two-day winning streak.

On Monday, the index finished at 2,680.26, the highest closing price since May 31, 2022, when it ended the day at 2,685.9.

Trade volume was heavy at 596.3 million shares worth 9.7 trillion won ($7.2 billion), with losers outnumbering winners 590 to 277.

Institutions led the decline, dumping a net 343 billion won worth of local shares, but foreigners remained net buyers with a net 98.9 billion won and individuals with 202.4 billion won.

"After the Kospi hit its highest point in more than one year, investors engaged in profit-taking," said Lee Jae-won from Shinhan Securities.

Market heavyweights ended in negative territory.

Samsung Electronics slid 0.68 percent to 73,300 won and SK hynix tumbled 1.12 percent to 149,600 won.

SK Innovation fell 2.25 percent to 126,000. LG Chem moved down 0.39 percent to 506,000 won.

Bio shares also traded weaker, with Samsung Biologics decreasing 0.37 percent to 818,000 won and Celltrion retreating 1.37 percent to 179,900 won.

Hyundai Motor sank 4.16 percent to 242,000 won and Kia went down 1.28 percent to 116,100 won.

Lotte Shopping fell 2.71 percent to 82,700 won and Shinsegae decreased 2.22 percent to 185,300 won.

NC Soft slipped 2.35 percent to 208,000 won and Naver descended 0.49 percent to 202,500 won.

Battery makers were among the rare winners, with LG Energy Solution rising 1.64 percent to 404,000 won and Posco Future M gaining 2.7 percent to 304,500 won.

The local currency closed at 1,337.6 won against the greenback, up 2.4 won from the previous session's close.

The Kosdaq rose 7.70 points, or 0.9 percent, to close at 866.17.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds added 0.7 basis point to 3.403 percent, and the return on the U.S.' benchmark 10-year government bonds remained unchanged as U.S. markets were closed for Presidents' Day.

BY KIM JI-YE, YONHAP [kim.jiye@joongang.co.kr]