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Kospi breaks 5-day winning streak, sheds 0.85 percent amid profit taking

Published: 19 Aug. 2024, 16:52 Updated: 20 Aug. 2024, 11:50

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,674.36 points on Monday, down 0.85 percent, or 22.87 points, from the previous trading session. The Kosdaq dropped 1.13 percent, or 8.86 points, to 777.47. [NEWS1]

Shares closed lower Monday to snap their five-day winning streak ahead of remarks from Federal Reserve Chair Jerome Powell later this week. The local currency sharply rose to the highest in five months to the dollar.

The benchmark Kospi lost 22.87 points, or 0.85 percent, to close at 2,674.36.

Trade volume was moderate at 386 million shares worth 9 trillion won ($6.8 billion), with losers outnumbering gainers 531 to 348.

Foreigners offloaded 141.9 billion won worth of local shares, while individuals bought a net 136.9 billion won. Institutions shed a net 13.3 billion won.

Seoul shares closed lower as investors cashed in profits from recent gains following a record crash reported on Aug. 5, ahead of major events including the Jackson Hole symposium, in which the Fed chief may provide more hints on U.S. policy directions.

"In order for the index to return to levels of early July, we need to keep a watchful eye through early September, as major events such as Nvidia's earnings and employment data are in the offing," said Han Ji-young, an analyst at Kiwoom Securities.

Samsung Electronics moved down 2.37 percent to 78,300 won, and SK hynix slid 2.9 percent to 193,900 won. Battery maker LG Energy Solution shed 2.08 percent to 329,500 won.

Chemical firms finished bearish, with LG Chem falling 1.03 percent to 289,500 won and oil refiner SK Innovation sliding 2.05 percent to 100,200 won.

Financial firms closed sharply higher, with KB Financial rising 3.57 percent to 87,000 won and Shinhan Financial adding 3.06 percent to 57,200 won. Samsung Life Insurance added 5.41 percent to 93,600 won.

Carmakers closed mixed, with Hyundai Motor remaining unchanged at 255,000 won and its sister Kia losing 2.55 percent to 103,200 won. Auto parts maker Hyundai Mobis added 0.23 percent to 220,500 won.

The local currency was trading at 1,334 won against the dollar as of 3:30 p.m., down 23.6 won from the previous session, the highest since March 21, when the corresponding figure was 1,322.4.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds dropped 0.3 basis points to 2.928 percent and the return on the benchmark U.S. 10-year bonds decreased 3.0 basis points to 3.881 percent.

BY YOON SEUNG-JIN, YONHAP [[email protected]]