Kospi plunges ahead of Apple, Samsung, Microsoft earnings

Finance

Kospi plunges ahead of Apple, Samsung, Microsoft earnings

Published: 30 Jul. 2024, 16:31

KIM JU-YEON
kim.juyeon2@joongang.co.kr

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,738.19 points on Tuesday, down 0.99 percent, or 27.34 points, from the previous trading session. [YONHAP]

Shares closed almost 1 percent lower Tuesday with investors more cautious ahead of the U.S. Federal Reserve's rate decision and earnings releases from global Big Tech firms this week. The local currency lost ground against the dollar.

The Kospi fell 27.34 points, or 0.99 percent, to close at 2,738.19.

Trade volume was slim at 376.4 million shares worth 9.9 trillion won ($7.1 billion), with losers far outnumbering winners 664 to 225.

Institutions and foreigners sold 355.2 billion won and 400 billion won worth of local stocks, respectively, offsetting individuals' stock buying valued at 729.2 billion won.

“Foreigners and institutions dumped local shares amid heightened risk-off mood ahead of the Fed's rate decision and earnings releases of tech giants due later this week,” said Lee Kyoung-min, an analyst at Daishin Securities.

This week, all eyes are on the Federal Open Market Committee meeting and earnings results of Big Tech firms, such as Apple, Amazon, Microsoft and Samsung Electronics.

In Seoul, Samsung Electronics fell 0.25 percent to 81,000 won while chipmaker SK hynix, a beneficiary of AI chip giant Nvidia, slid 3.43 percent to 188,900 won on news that Apple had used Google's processors to train its AI models.

Hanmi Semiconductor, a chip equipment supplier, shot down 6.33 percent to 128,700 won.

Carmaker Hyundai Motor plunged 2.15 percent to 250,000 won, and its affiliate, Kia, shed 1.85 percent to 111,600 won. Its auto parts affiliate, Hyundai Mobis, also plunged 2.63 percent to 222,000 won.

Among the few gainers, battery maker LG Energy Solution climbed 1.06 percent to 333,000 won, and shipping firm HMM advanced 1.86 percent to 17,550 won.

Korea Aerospace Industries, Korea's sole aircraft manufacturer, soared 4.58 percent to 57,100 won on an earnings surprise.

The local currency was trading at 1,385.30 won against the greenback as of 3:30 p.m., up 3.4 won from the previous session.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds rose 1.6 basis points to 2.994 percent, and the return on the benchmark U.S. 10-year bonds fell 2.1 basis points to 4.175 percent.

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