SEOUL, Sept. 6 (Yonhap) — South Korean stocks finished lower Wednesday, as the cost of oil rose and investors grew concerned about the potential for further monetary tightening among 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, marking a second consecutive decline. Trading volume was moderate at 415.9 million shares worth 7.55 trillion won (US$5.66 billion), with more losers than gainers 588 to 288.
The index opened slightly lower and extended losses due to heavy selling by institutions. Institutions and foreign investors sold a net 306.31 billion won and 69.52 billion worth of shares, respectively, while retail investors purchased a net 341.45 billion won worth of shares.
Investor sentiment weakened as global oil prices hit the highest level since late 2022 after the Organization for the Petroleum Exporting Countries Plus promised to extend supply cuts.
“The inflationary pressures will likely cause investors to give up hope for the Federal Reserve to ease its aggressive monetary tightening. The macroeconomic uncertainties will likely limit the rise of the KOSPI,” commented Han Ji-young, an analyst at Kiwoom Securities Co.
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.
This photo shows a Hana Bank dealing room in Seoul on Sept. 5, 2023. (Yonhap)
Large-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 fell 1.68 percent to 527,000 won, and POSCO Holdings plummeted 2.85 percent to 580,000 won. Samsung SDI declined 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 slipping 0.25 percent to 78,900 won.
Biotech firm Samsung Biologics decreased 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 rose 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.
graceoh@yna.co.kr
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