Kospi sheds 0.7% on concerns over chip subsidies

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Kospi sheds 0.7% on concerns over chip subsidies

Published: 27 Nov. 2024, 16:32

CHO YONG-JUN
[email protected]

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,503.06 points on Wednesday, down 0.69 percent, or 17.3 points, from the previous trading session. [YONHAP]

Shares closed lower Wednesday as investors offloaded semiconductor shares amid concerns that the incoming U.S. administration may scrap subsidies for chipmakers. The local currency rose against the dollar.

The benchmark Kospi shed 17.3 points, or 0.69 percent, to close at 2,503.06. The Kosdaq fell 1.15 points, or 0.17 percent, to 692.00.

Trade volume was moderate at 406.3 million shares worth 8.4 trillion won ($6 billion), with losers outnumbering winners 516 to 372.

Major tech shares lost ground after a senior official of the incoming Donald Trump administration stated in a social media post that it is "highly inappropriate" for the incumbent government to expedite efforts to distribute subsidies to chipmakers ahead of the transition.

"Due to the customs-related issues sparked by Trump, carmakers and chipmakers traded bearish on Wall Street, weighing down the market. But such issues were already reflected in the market to some extent," Kiwoom Securities researcher Han Ji-young said.

Foreigners sold a net 368.4 billion won, while institutions bought a net 292 billion won. Individuals offloaded a net 28 billion won.

Samsung Electronics plunged 3.43 percent to 56,300 won and SK hynix lost 4.97 percent to 168,300 won.

Carmakers closed bearish as well, with Hyundai Motor falling 1.12 percent to 221,000 won and Kia losing 3.08 percent to 94,300 won, while parts affiliate Hyundai Mobis decreased 1.2 percent to 246,000 won.

SK Innovation decreased 2.86 percent to 115,500 won and S-Oil also slipped 2.86 percent to 115,500 won.

Naver added 3.78 percent to 203,000 won and Kakao gained 3.65 percent to 38,350 won.

JYP Entertainment rose 5.30 percent to 73,500 won.

The local currency was trading at 1,397 won against the greenback at 3:30 p.m., down 1.2 won from the previous session.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds lost 3.2 basis points to 2.742 percent, and the return on the benchmark 10-year U.S. government bonds increased 1.5 basis points to 4.297 percent.

BY CHO YONG-JUN, YONHAP [[email protected]]