Stocks slide as Biden withdrawal shakes market

Finance

Published: 22 Jul. 2024, 17:18

Stocks slide as Biden withdrawal shakes market

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,763.51 points on Monday, down 1.14 percent, or 31.95 points, from the previous trading session. The Kosdaq fell 2.26 percent, or 18.76 points, to 809.96. [NEWS1]

Shares fell more than 1 percent Monday hit by declines in semiconductor stocks. The local currency fell in value against the dollar.

The Kospi tumbled 31.95 points, or 1.14 percent, to close at 2,763.51.

Trade volume was slightly moderate at 456.1 million shares worth 10.3 trillion won ($7.42 billion), with losers outnumbering winners 673 to 211. Institutions and foreign investors dumped local shares worth a combined 105.3 billion won, while retail investors bought 137.8 billion won worth of shares.

Market uncertainties grew as U.S. President Joe Biden ended his reelection campaign.

Han Ji-young, an analyst at Kiwoom Securities, said the market “could transition to a phase in which it is unknown who will win the U.S. presidential election, from the recent so-called Trump trading sentiment predicated on the assumption of a Trump victory in November.”

Most blue chips suffered from weak trading, with Samsung Electronics falling 1.66 percent to 83,000 won and SK hynix falling 2.15 percent to 205,000 won.

Energy-related stocks also went south. SK Innovation fell 3.93 percent to 107,600 won and LG Chem declined 4.05 percent to 320,000 won.

Auto shares also closed lower. Hyundai Motor slipped 1.35 percent to 255,000, won and Kia shed 0.34 percent to close at 115,900 won. Auto parts maker Hyundai Mobis fell 0.89 percent to 221,500 won.

Steelmaker Posco dropped 2.29 percent to 362,000 won, and defense company Hanwha Aerospace fell 2.31 percent to 275,000 won.

Bio-related shares ended bullish. Samsung Biologics rose 1.56 percent to 848,000 won, and Celltrion grew 2.82 percent to 193,200 won.

Financial shares also went up. KB Financial Group soared 2 percent to 86,500 won, Shinhan Financial Group rose 3 percent to 55,000 won and Hana Financial Group gained 1.44 percent to 63,600 won.

The local currency had been trading at 1,388.2 won against the greenback as of 3:30 p.m., up 1.5 won from the previous session.

Bond prices, which move inversely to yields, closed lower. The yield on three-year government bonds rose 0.8 basis points to 3.082 percent, and the return on the benchmark U.S. 10-year benchmark bonds added 3.7 basis points to reach 4.238 percent.

BY KIM JU-YEON, YONHAP [kim.juyeon2@joongang.co.kr]