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SEOUL, Sept. 6 (Yonhap) — South Korean stocks ended lower on Wednesday, as the global increase in oil prices sparked fears of inflation and the continued push for monetary tightening by major economies. The local currency strengthened against the U.S. dollar.
The benchmark Korea Composite Stock Price Index decreased 18.84 points, or 0.73 percent, to close at 2,563.34, continuing a losing streak for the second day. Trading volume was moderate at 415.9 million shares worth 7.55 trillion won (US$5.66 billion), with losers outnumbering gainers 588 to 288.
The index opened slightly lower and extended losses due to heavy selling by institutions.
Institutions and foreigners sold a net 306.31 billion won and 69.52 billion worth of shares, respectively, while retail investors bought a net 341.45 billion won worth of shares.
Investor sentiment weakened as global oil prices rose to the highest level since late 2022 after the Organization for the Petroleum Exporting Countries Plus vowed to extend supply cuts.
“Inflationary pressures will dash investors’ hope for the Federal Reserve to ease its aggressive monetary tightening. Uncertainties regarding macroeconomic circumstances would limit the rise of the KOSPI,” Han Ji-young, an analyst at Kiwoom Securities Co., said.
Fed Gov. Christopher Waller said Tuesday (U.S. time) the Fed has room to proceed carefully with its monetary tightening given recent economic data.
Federal Bank of Cleveland President Loretta Mester said the Fed may need to raise the interest rate further, which dragged down U.S. shares Tuesday.
An electronic signboard at a Hana Bank dealing room in Seoul shows the benchmark Korea Composite Stock Price Index (KOSPI) closed at 2,563.34 points on Sept. 6, 2023, down 0.73 percent from the previous session's close. (Yonhap)
Big-cap tech and battery shares were among the biggest decliners on the Seoul bourse.
Market leader Samsung Electronics dropped 0.99 percent to 70,000 won, and chip giant SK hynix decreased 1.01 percent to 118,200 won.
Leading battery maker LG Energy Solution decreased 1.68 percent to 527,000 won, and POSCO Holdings tumbled 2.85 percent to 580,000 won.
Samsung SDI went down 2.11 percent to 603,000 won, and LG Chem retreated 1.18 percent to 585,000 won.
Carmakers closed mixed, with top automaker Hyundai Motor rising 0.05 percent to 186,700 won and its affiliate Kia losing 0.25 percent to 78,900 won.
Biotech firm Samsung Biologics fell 1.09 percent to 728,000 won, while Celltrion inched up 0.2 percent to 146,900 won.
Major platform operators gained ground. Internet giant Naver increased 0.94 percent to 214,000 won, and Kakao, the operator of the popular mobile messenger KakaoTalk, added 0.31 percent to 49,050 won.
Refiners climbed on rising oil prices. S-Oil jumped 0.91 percent to 77,600 won, and GS surged 1.29 percent to 39,400 won.
The local currency ended at 1,330.5 won against the U.S. dollar, up 0.1 won from the previous session’s close.
Bond prices, which move inversely to yields, closed mixed. The yield on three-year Treasurys remained unchanged at 3.765 percent and the return on the benchmark five-year government bonds added 0.2 basis point to 3.816 percent.
graceoh@yna.co.kr
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