Kospi hits 3-month low as won-dollar rate ends above 1,400

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Kospi hits 3-month low as won-dollar rate ends above 1,400

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,482.57 points on Tuesday, down 1.94 percent, or 49.09 points, from the previous trading session. [NEWS1]

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,482.57 points on Tuesday, down 1.94 percent, or 49.09 points, from the previous trading session. [NEWS1]

 
Shares dipped to their lowest in over three months in Seoul on Tuesday, while the local currency sharply depreciated against the dollar, closing above the 1,400 won per dollar mark for the first time in two years.
 
The steep fall has been driven by U.S. policy uncertainties under the incoming Donald Trump administration, as investors pulled out of the domestic stock market amid the continued strengthening of the greenback.
 

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The Kospi lost 49.09 points, or 1.94 percent, to close at 2,482.57, the lowest since Aug. 5, when it ended trading at 2,441.55.
 
Trade volume was heavy at 719 million shares worth 12.3 trillion won ($8.7 billion), with losers far outpacing winners 787 to 120.
 
Foreigners sold a net 233 billion won worth of local stocks and institutions offloaded a net 109 billion won, offsetting a net purchase of 332.3 billion won by individuals.
 
With Trump pledging to impose high tariffs on imported goods and implement protectionist measures, investors have remained cautious despite recent rallies on Wall Street.
 
"Investors are advised to respond prudently to market fluctuations, given the weak investment sentiment and disparities among industries," said Kim Ji-won, a researcher at KB Securities.
 
Samsung Electronics tumbled 3.64 percent to 53,000 won, marking the lowest closing price since 52,900 won posted on Sept. 28.
 
Carmaker Hyundai Motor decreased 1.9 percent to 207,000 won, and Kia shed 2.85 percent to 91,900 won.
 
The local currency was trading at 1,403.5 won against the greenback at 3:30 p.m., up 8.8 won from the previous session. It was the first time that the closing rate exceeded the threshold since Nov. 7, 2022, when it ended the day at 1,401.2.
 
The won has been hovering around the 1,400 mark against the dollar in recent sessions, following Trump's victory in the U.S. presidential election last week.
 
Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds fell 0.1 basis point to 2.901 percent, and the return on the benchmark U.S. 10-year government bond lost 3.2 basis points to 4.306 percent.

BY SHIN HA-NEE, YONHAP [[email protected]]
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