SEOUL, Nov. 7 (Yonhap) — South Korean stocks closed Tuesday with a 2.3 percent decrease, as investors cashed in on the sharpest-ever daily gains from the day before, which was brought on by the government’s reinstatement of a ban on short selling. The local currency also fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) dropped 58.41 points, or 2.33 percent, to finish at 2,433.96, ending its four-day winning streak. Trading volume was moderate, with 447.6 million shares worth 11.38 trillion won (US$8.6 billion), and losers outnumbering gainers 634 to 244.
Monday’s gains of 134.03 points, or 5.66 percent, were spurred by the short selling prohibition, which will remain in place until June 2024. Financial authorities cited worries about rising market volatility from illegal short selling activities.
“Today’s selling spree was due to investors taking advantage of yesterday’s large gains,” said Kim Seok-hwan, an analyst at Mirae Asset Securities. IBK Securities analyst Chung Yong-taek commented that the strong market performance the day before was an “irregular reaction” to the unexpected change to the market system.
Leading battery manufacturer LG Energy Solution tumbled 10.23 percent to 443,000 won, and its smaller rival Samsung SDI plummeted 7.91 percent to 466,000 won. Tech companies also saw losses, with No. 2 chip maker SK hynix slipping 1.95 percent to 130,400 won and home appliance giant LG Electronics finishing 1.8 percent lower at 103,400 won. Samsung Electronics remained unchanged at 70,900 won.
Chemical and energy shares, which had experienced substantial gains the day before, also experienced steep losses. LG Chem dropped 5.57 percent to 492,000 won and top refiner SK Innovation decreased 7.07 percent to 144,500 won.
The local currency ended at 1,307.90 won against the U.S. dollar, down 10.60 won from the previous session’s close, following its rise in the past three consecutive sessions.
This photo shows employees at a Hana Bank in Seoul working in front of electronic signboards tracking real-time developments of key market indexes on Nov. 7, 2023. (Yonhap) odissy@yna.co.kr (END)