Won snaps 8-day losing streak against dollar as shares close down

Home > Business > Finance

Won snaps 8-day losing streak against dollar as shares close down

Published: 24 Oct. 2024, 17:58 Updated: 24 Oct. 2024, 19:35

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

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,581.03 points on Tuesday, down 0.72 percent, or 18.59 points, from the previous trading session. [NEWS1]

Shares closed lower Thursday on tech losses amid concern over economic growth and waning bets on the Federal Reserve's rate cuts. The won snapped its eight-day losing streak against the dollar in value.

The benchmark Kospi fell 18.59 points, or 0.7 percent, to 2,581.03. Trade volume was moderate at 336.43 million shares worth 9.47 trillion won ($6.9 billion), with losers outpacing gainers 613 to 256.

The Kosdaq lost 10.60 points, or 1.42 percent, to close at 734.59.

Institutions and foreigners sold a combined 653 billion won in stocks, offsetting individuals' stock purchases valued at 621 billion won.

Overnight, the Dow Jones Industrial Average fell 0.96 percent to 42,514.95, while the tech-heavy Nasdaq Composite declined 1.6 percent to 18,276.65.

Bank of Korea reported Thursday that the country just barely avoided a contraction in the third quarter by growing 0.1 percent on-quarter, far lower than the market median of a 0.5 percent gain.

In Seoul, tech and auto stocks led declines.

Samsung Electronics fell 4.2 percent to 56,600 won, SK hynix declined 1.1 percent to 198,200 won, Hyundai Motor plunged 5.2 percent to 228,500 won and SK Innovation slid 0.8 percent to 115,300 won.

Among gainers, Korea Zinc soared by the daily upward limit of 30 percent to 1,138,000 won, state utility Korea Electric Power Corporation surged 5 percent to 23,050 won and Korean Air rose 0.6 percent to 23,450 won.

Korea Zinc shares jumped as investors await the results of its share buyback results led by Chairman Choi Yun-beom in an effort to defend the smelter from a takeover offer by Youngpoong, the company's biggest shareholder, and private equity firm MBK Partners.

Thursday's closing price, well above the 890,000 won buyback offer, indicates that some investors expect there might be an even higher offer price as the battle for control escalates. Such expectations buoyed the stock price, according to analysts.

In the tender offer that ended last week, Youngpoong and MBK secured a 5.34 percent stake in Korea Zinc at 830,000 won apiece, bringing the stake to more than 38 percent.

Chairman Choi and his family currently own a total 15.6 percent stake in the zinc firm. Korea Zinc sees its friendly shares, including the Choi family's portion, reaching a 34 to 36 percent stake.

The won was trading at 1,380.20 won against the greenback at 3:30 p.m., down 2 won from the previous session.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds fell 4.4 basis points to 2.892 percent, and the return on the benchmark 10-year U.S. government bonds rose 2.9 basis points to 4.239 percent.

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