Kospi drops 0.82% as investors cash in on winning streak

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Kospi drops 0.82% as investors cash in on winning streak

Published: 27 Sep. 2024, 16:49

CHO YONG-JUN
cho.yongjun1@joongang.co.kr

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,649.78 points on Friday. [NEWS1]

Shares closed lower Friday despite overnight success on Wall Street as investors took profits following strong gains in recent sessions. The local currency fell against the dollar.

The benchmark Kospi slipped 0.82 percent, or 21.79 points, to 2,649.78.

Trading volume was moderate at 402.1 million shares worth 11.4 trillion won ($8.65 billion), with losers outnumbering winners 457 to 414.

Institutions dumped a net 421.6 billion won worth of local shares, while retail and foreign investors purchased a net 436.9 billion won worth of shares combined.

Overnight, major U.S. indexes gained ground thanks to the surprise earnings result of Micron Technology, lifting artificial intelligence-related shares. The Dow Jones Industrial Average climbed 0.62 percent, the S&P 500 increased 0.4 percent, and the tech-heavy Nasdaq composite rose 0.6 percent.

Despite such positive market signs from the United States, local blue chips lost steam as investors locked in profits after a series of gains recorded over the past several sessions.

"After the sharp rise driven by positive factors such as Micron Technology's earnings and China's economic stimulus measures, the market seems to be taking a breather," Shinhan Financial Securities analyst Kang Jin-hyuk said.

Bio and automotive shares fell sharply, with Samsung Biologics plunging 6.27 percent to 986,000 won and Hyundai Motor sliding 1.74 percent to 254,500 won.

Financial shares and refiners also lost momentum, Shinhan Financial fell 1.4 percent to 56,200 won and SK Innovation dropped 1.58 percent to 118,700 won.

Chipmakers closed mixed. Samsung Electronics fell 0.77 percent to 64,200 won, but SK hynix gained 1.6 percent to end at 183,800 won.

The local currency was trading at 1,318.6 won against the U.S. dollar, down 8.6 won from the previous session. The Kosdaq lost 4.69 points, or 0.60 percent, to close at 774.49.

Bond prices, which move inversely to yields, closed lower. The yield on three-year government bonds gained 2.2 basis points to 2.828 percent, and the return on the benchmark U.S. 10-year government bond rose 1.2 basis points to 3.796 basis points.

BY CHO YONG-JUN, YONHAP [cho.yongjun1@joongang.co.kr]