Home > Business > Economy

Kospi snaps 3-day gain streak as investors cash out

Published: 12 Jul. 2024, 18:13

CHO YONG-JUN
[email protected]

A screen in Hana Bank's trading room in central Seoul shows the Kospi on Thursday. [NEWS1]

Shares closed lower Friday, snapping a three-session upward streak as investors cashed in profits after the U.S. market finished bearish despite slowing inflation data. The local currency fell against the dollar.

The Kospi fell 34.35 points, or 1.19 percent, to 2,857.

Trade volume was heavy at 399 million shares worth 13.7 trillion won ($9.93 billion), with losers outnumbering gainers 430 to 426.

Foreigners sold a net 549 billion won, while individuals bought a net 473 billion won. Institutions purchased a net 82 billion won.

Inflation in the United States fell 0.1 percent in June from a month earlier, marking the first on-month decline since May 2020 and sparking hopes for a rate cut by the Federal Reserve later this year.

But major tech shares on Wall Street finished sharply lower overnight as investors sought profits.

"We need to address profit-taking moves instead of a transition in the market direction," Kim Ji-won, an analyst at KB Securities, said.

In Seoul, tech and auto shares led the overall decline.

Samsung Electronics plunged 3.65 percent to 84,400 won, tracking losses of chipmakers on Wall Street overnight. SK hynix also surrendered 3.32 percent to 233,000 won.

Battery makers finished bearish as well, with LG Energy Solution losing 0.53 percent to 373,000 won and Samsung SDI falling 2.44 percent to 380,000 won.

Hyundai Motor closed 2.51 percent lower at 271,500 won, and Kia lost 0.82 percent to 121,300 won. Auto parts maker Hyundai Mobis fell 0.42 percent to 234,500 won.

Pharmaceutical companies, on the other hand, closed higher, with Samsung Biologic increasing 0.98 percent to 823,000 won and Celltrion gaining 1.61 percent to 188,800 won.

The local currency had been trading at 1,379.3 won against the greenback as of 3:30 p.m., up 0.8 won from the previous session. The Kosdaq lost 34.35 points, or 1.19 percent, to close at 2,857.00.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds lost 6.2 basis points to 3.103 percent, and the return on the benchmark U.S. 10-year benchmark bonds fell 7.3 basis points to 4.213 percent.

BY CHO YONG-JUN, YONHAP [[email protected]]