Stocks end two-day rebound as Big Tech falters

Finance

Stocks end two-day rebound as Big Tech falters

Published: 08 Aug. 2024, 17:13

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,556,73 points on Thursday, down 0.45 percent, or 11.68 points, from the previous trading session. The Kosdaq dropped 0.44 percent, or 3.26 points, to 745.28. [YONHAP]

Stocks ended their two-day rebound following the global crash with investor sentiment dampened by lingering U.S. recession woes and the sluggish performance of Big Tech firms. The local currency slightly fell against the dollar.

The benchmark Kospi dropped 11.68 points, or 0.45 percent, to close at 2,556.73.

Trade volume was moderate at 477.7 million shares worth 11.2 trillion won ($8.1 billion), with losers closely beating winners 464 to 423.

Foreigners and institutions led the decline, dumping a net 527.5 billion won and 286.3 billion won, respectively. Retail investors scooped up a net 809 billion won.

The Kospi had risen for two straight sessions after plunging nearly 9 percent Monday due to massive sell-offs.

Overnight, U.S. stocks also finished bearish after weaker-than-expected demand in a 10-year U.S. bond auction amid continuing jitters. The Dow Jones Industrial Average fell 0.6 percent, and the Nasdaq composite dropped 1.05 percent.

In Seoul, most shares went red, driven by losses in chips and electric vehicle batteries.

Samsung Electronics declined 1.74 percent to 73,400 won, and SK hynix sank 3.48 percent to 163,400 won. Hanmi Semiconductor slid 2.78 percent to 104,900 won.

Battery maker LG Energy Solution fell 1.08 percent to 321,000 won, and Posco Future M tumbled 5.23 percent to 199,500 won.

Kakao rose 0.39 percent to 38,450 won after its founder, Kim Beom-su, was indicted on stock manipulation charges related to the firm's takeover of SM Entertainment last year.

HYBE gained 1.27 percent to reach 183,800 won even after BTS member Suga was involved in a drunk-driving incident.

The local currency was trading at 1,377.2 won against the dollar as of 3:30 p.m., up 0.4 won from the previous session.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds rose 2.1 basis points to 2.907 percent, and the return on the benchmark U.S. 10-year bonds fell 5.7 basis points to 3.950 percent.

BY YOON SEUNG-JIN, YONHAP [yoon.seungjin@joongang.co.kr]