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Kopsi slumps 0.76% after mixed results on Wall Street

Published: 04 Jun. 2024, 16:52

KIM JU-YEON
[email protected]

A screen in Hana Bank's trading room in central Seoul shows stock markets closing on Monday. [NEWS1]

Shares closed lower on Tuesday after strong gains the previous session and mixed overnight results on Wall Street. The local currency rose in value against the dollar.

The Kospi fell 20.42 points, or 0.76 percent, to close at 2,662.10.

Trade volume was heavy at 759.2 million shares worth 12.5 trillion won ($9.07 billion), with losers far outpacing gainers 642 to 226. Foreigners and institutions dumped shares worth a net 516 billion won, while individuals snapped up 520 billion won worth of shares.

The Kospi rallied 1.74 percent Monday as investor sentiment was boosted by favorable economic data that could lead to a rate cut in the United States.

Overnight, Wall Street shares finished mixed amid the latest economic indicators showing a slowing of the U.S. economy. The Dow Jones Industrial Average fell 0.3 percent, while the Nasdaq composite gained 0.6 percent and the S&P 500 edged up 0.1 percent.

"Concerns about an economic slowdown due to weak indicators and anticipation of interest rate cuts have extended the mixed results in the U.S. stock market," Kim Ji-won, an analyst at KB Securities, said.

"It is necessary to approach investments with caution and prepare for increased volatility," Kim added.

In Seoul, most blue chips lost ground, with Samsung Electronics falling 0.53 percent to 75,300 won and SK hynix sliding 0.46 percent to 193,300 won.

Financial shares also regressed, with KB Financial losing 2.14 percent to 77,600 won and Shinhan Financial slumping 3.4 percent to 45,400 won.

In contrast, battery and pharmaceutical stocks advanced. LG Energy Solution climbed 1.36 percent to 336,500 won, and Celltrion gained 5.08 percent to end at 188,100 won.

Tech shares also ended higher. Naver rose 2.37 percent to 176,800 won and Kakao added 0.68 percent to 44,600 won.

The local currency closed at 1,376 won against the dollar, down 0.1 won from the previous session's close.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds fell 4.5 basis points to 3.390 percent, and the return on the benchmark U.S. 10-year government bonds dropped 10.7 basis points to 4.391 percent.

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