South Korean shares dipped by nearly 2 percent Thursday as tech and auto stocks crashed following an overnight drop on Wall Street. The local currency fell slightly against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) lost 48.06 points, or 1.74 percent, to close at 2,710.65.
Trading volume was heavy at 433 million shares worth 13.4 trillion won (US$9.67 billion) with losers outnumbering gainers 728 to 160.
Foreigners remained net sellers for a second straight session, dumping a net 672.5 billion won worth of local shares, while retail investors scooped up a net 825.6 billion won. Institutions dumped a net 157.2 billion won.
The KOSPI had opened sharply lower, tracking an overnight dip on Wall Street caused by worse-than-expected performances by major tech companies, including Tesla.
The Dow Jones Industrial Average shed 1.25 percent, while the tech-heavy Nasdaq plunged 3.64 percent Wednesday (U.S. time).
In Seoul, tech giant and market kingpin Samsung Electronics lost 1.95 pe
rcent to 80,400 won, while the world’s No. 2 chipmaker SK hynix plunged 8.87 percent to 190,000 won despite its stellar performance in the second quarter.
“Local shares finished lower, led by SK hynix, due to a sharp drop in the U.S. stock market,” IBK Investment and Securities analyst Chung Yong-taek said. “Concerns about overvaluation of tech shares and slowing growth affected market sentiments, which in turn affected our stock market.”
Autos also suffered heavy losses with market leader Hyundai Motor dipping 2.71 percent to 251,500 won, while its smaller affiliate Kia Motors shed tumbled 2.87 percent to 115,000 won.
Pharmaceuticals and chemical firms finished in positive terrain with industry leaders Celltrion and LG Chem advancing 3 percent and 0.97 percent to 199,200 won and 313,000 won, respectively.
Top battery maker LG Energy Solution added 3.42 percent to 332,500 won, while its local rival Samsung SDS gained 0.33 percent to 151,400 won.
The local currency was trading at 1,385.45 won against th
e dollar as of 3:30 p.m., down 1.65 won from the previous session’s close.
Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys shed 2.2 basis points to 3.024 percent, and the return on the benchmark five-year government bonds lost 1.4 basis points to 3.059 percent.
Source: Yonhap News Agency