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Kospi sheds 0.57% as BOK cuts growth forecast more than expected

Published: 25 Feb. 2025, 16:57

CHO YONG-JUN
[email protected]

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,630.29 points on Feb. 25, down 14.98 points, or 0.57 percent, from the previous trading session. [NEWS1]

Shares dropped for the second consecutive session Tuesday as concerns about an economic slowdown dragged down investor sentiment.

The benchmark Kospi shed 14.98 points, or 0.57 percent, to close at 2,630.29, following a 0.35 percent drop the previous day.

The Kosdaq lost 3.90 points, or 0.5 percent, to close at 769.43.

Trade volume was moderate at 420.7 million shares worth 10.3 trillion won ($7.2 billion), with decliners beating gainers 527 to 358.

Foreigners and institutions led the daily decline, selling a net 320.4 billion won and 97.6 billion won, respectively, offsetting individuals' stock purchases worth 318.1 billion won.

Earlier in the day, the Bank of Korea cut its key rate by 25 basis points to 2.75 percent, citing weak domestic demand and uncertainties at home and abroad. It also lowered its outlook for the country's economic growth this year to 1.5 percent from 1.9 percent, a bigger cut than anticipated.

Most shares finished in negative territory.

Samsung Electronics edged down 0.17 percent to 57,200 won and SK hynix retreated 2.2 percent to 200,500 won.

Oil refinery and chemical shares were among the biggest losers, with SK Innovation sinking 3.81 percent to 128,800 won and LG Chem skidding 2.74 percent to 248,500 won.

Samyang Foods decreased 1.79 percent to 879,000 won, while food giant CJ CheilJedang slid 1.4 percent to 246,000 won.

Auto shares also went south as Hyundai Motor lost 2.17 percent to 202,500 won and Kia declined 1.79 percent to 93,200 won.

Bio and entertainment stocks finished higher, with SK Biopharmaceuticals soaring 1.91 percent to 117,400 won and CJ ENM advancing 1.79 percent to 62,400 won.

Hanwha Ocean rose 5.17 percent to 75,200 won.

The local currency was quoted at 1,430.4 won against the greenback at 3:30 p.m., up 3 won from the previous session.

Bond prices, which move inversely to yields, closed higher. Three-year government bond yields fell 1.6 basis points to 2.596 percent, while the return on the benchmark 10-year U.S. government bonds fell 2.5 basis points to 4.401 percent.

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