Stocks dip after government's 'value-up' program disappoints

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Stocks dip after government's 'value-up' program disappoints

Published: 27 Feb. 2024, 17:38

KIM JI-YE
[email protected]

Screens in Hana Bank's trading room in central Seoul show the Kospi closing at 2,625.05 points on Tuesday, down 0.83 percent, or 22.03 points, from the previous trading session. [NEWS1]

Stocks ended more than 0.8 percent lower Tuesday as investors cautiously awaited of the release of major U.S. economic data later this week. The local currency gained ground against the dollar.

The Kospi retreated 22.03 points, or 0.83 percent, to 2,625.05.

Trade volume was somewhat heavy at 567.4 million shares worth 12.4 trillion won ($9.3 billion), with decliners sharply beating gainers 745 to 149.

Institutions led the decline by unloading local shares worth 50.6 billion won, while individual and foreign investors purchased stocks worth 34.8 billion won and 167.1 billion won, respectively.

Overnight, the U.S. stock market closed lower following a rally last week.

Investors were paying close attention to the release of the core personal consumption expenditures price index Thursday, an indicator closely monitored by the U.S. Federal Reserve.

“Upward momentum deriving from the government's value-up program ended yesterday, and investors have become more cautious ahead of planned remarks by Fed officials later this week, including those in Atlanta, Boston, New York, Chicago and Cleveland,” said Lee Kyoung-min, an analyst at Daishin Securities.

The “value-up” program refers to the Korean government's plan to boost the corporate value of domestic companies by providing guidelines and various tax incentives.

In Seoul, most big-cap stocks ended in negative terrain.

Samsung Electronics gained 0.14 percent to 72,900 won while SK hynix slid 4.94 percent to 153,800 won.

LG Energy Solution lost 1.47 percent to 403,500 won, Samsung SDI retreated 2.56 percent to 381,000 won, and Posco Future M fell 2.67 percent to 309,500 won.

Hyundai Motor also edged down 0.21 percent to 238,500 won, and Kia decreased 1.75 percent to 112,600 won. Hyundai Mobis plunged 3.11 percent to 233,500 won.

HYBE fell 7.13 percent to 202,000 won despite robust 2023 sales.

Among the few gainers, Celltrion jumped 4.74 percent to 190,100 won, and Hanwha Aerospace soared 7.76 percent to 179,100 won on stronger-than-expected fourth-quarter earnings.

The local currency ended at 1,331.00 won against the greenback, inching down 0.1 won from the previous session's close.

The Kosdaq lost 13.65 points, or 1.57 percent, to close at 853.75

Bond prices, which move inversely to yields, closed lower. The yield on three-year government bonds gained 2.4 basis points to 3.364 percent, and the return on the benchmark 10-year government bonds gained 2.9 basis points to 4.281 percent.

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