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South Korean Stocks Snap 11-Session Winning Streak

Strategic Insights

— 2 min read

South Korean stocks experienced a decline after an 11-session winning streak, primarily driven by losses in chipmakers as investors locked in profits ahead of the Federal Reserve's rate decision. The Korean won depreciated against the US dollar, as the benchmark Korea Composite Stock Price Index (KOSPI) dropped 36.22 points, or 1.05 percent, to finish at 3,413.40. This downward movement came after the index opened lower, tracking overnight losses on Wall Street, and continued as investors took to the sidelines after sharp gains over the previous 11 consecutive sessions. The KOSPI had reached record highs for five straight days through Tuesday.

Key Takeaways:

  • The Korea Composite Stock Price Index (KOSPI) lost 36.22 points, or 1.05 percent, to finish at 3,413.40.
  • The index opened lower, tracking overnight losses on Wall Street, and fell further as investors took to the sidelines after sharp gains over the previous 11 consecutive sessions.
  • Investors locked in profits ahead of the Federal Reserve's rate decision, leading to losses in chipmakers such as Samsung Electronics and SK hynix.
  • Foreigners and institutions sold a net 35.22 billion and 306.3 billion won worth of shares, respectively, while retail investors bought a net 250.09 billion won worth of shares.
  • Market bellwether Samsung Electronics lost 1.51 percent to 78,200 won, and SK hynix sank 4.17 percent to 333,500 won.
  • Major bio company Samsung Biologics fell 1.54 percent to 1,020,000 won, and defense giant Hanwha Aerospace dipped 1.06 percent to 1,030,000 won.
  • But leading battery maker LG Energy Solution edged up 0.14 percent to 350,000 won, and major chemical firm LG Chem advanced 1.39 percent to 292,000 won.
  • Shipbuilders gathered ground, with HD Hyundai Heavy gaining 0.6 percent to 506,000 won, and Hanwha Ocean surging 1.99 percent to 113,000 won.
  • Carmakers traded mixed, with Top automaker Hyundai Motor going up 0.47 percent to 216,000 won, while its sister affiliate Kia retreated 0.39 percent to 101,000 won.
  • No. 1 financial firm KB Financial Group grew 0.42 percent to 118,300 won, and leading steelmaker POSCO Holdings increased 0.53 percent to 283,500 won.

Statistics:

  • The benchmark Korea Composite Stock Price Index (KOSPI) dropped 36.22 points, or 1.05 percent, to finish at 3,413.40.
  • Trade volume was moderate at 321.95 million shares worth 11.11 trillion won (US$8.04 billion), with losers outnumbering winners 566 to 302.
  • Foreigners and institutions sold a net 35.22 billion and 306.3 billion won worth of shares, respectively, while retail investors bought a net 250.09 billion won worth of shares.
  • The local currency was trading at 1,380.1 won against the greenback at 3:30 p.m., down 1.2 won from the previous session.

Sources:

  • Yonhap News Agency
  • Mirae Asset Securities
  • Samsung Electronics
  • SK hynix
  • LG Energy Solution
  • LG Chem
  • Hyundai Motor

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