(ATTN: ADDS bond yields at bottom)
On Wednesday, Seoul’s stock market ended lower due to lingering anxieties concerning the nation’s ban on short selling. The local currency also weakened against the U.S. dollar.
The Korea Composite Stock Price Index (KOSPI) decreased by 22.34 points, or 0.91 percent, to close at 2,421.62. During the day, 461.3 million shares worth 7.54 trillion won (US$5.75 billion) were traded, with more losers than winners (498 to 378).
At the start of the day, the KOSPI rose nearly 1 percent in line with overnight Wall Street gains, but it soon declined as foreign and retail investors sold off their stocks. Analysts attributed the market volatility to the surprise announcement of the short selling ban on Sunday.
On Monday, the KOSPI experienced its largest single-day gain of 134.03 points, or 5.66 percent, due to the short selling restriction. However, it dropped 2.33 percent the following day as investors sold shares to take advantage of the high prices.
“The uncertainty caused by the short selling ban has led to market fluctuations, and the supply of stocks, particularly those related to secondary batteries, is being closely watched,” said Han Ji-young, an analyst at Kiwoom Securities. She advised investors to be wary of market volatility for the rest of the week.
Stocks related to batteries were hit hard, with industry leader LG Energy Solution dropping 1.24 percent to 437,500 won and Samsung SDI falling 3.43 percent to 450,000 won. Technology and chemical shares also lost ground, including Samsung Electronics (down 1.41 percent to 69,900 won) and LG Chem (down 2.85 percent to 478,000 won). Steel and automobile companies, such as POSCO Holdings (down 1.72 percent to 456,500 won) and Hyundai Motor (down 0.74 percent to 174,800 won), also experienced losses.
Bio-related stocks, on the other hand, fared better, with SK bioscience increasing 1.48 percent to 68,400 won and Celltrion going up 1.22 percent to 157,500 won.
The South Korean won ended at 1,310.60 against the U.S. dollar, 2.70 won lower than the previous day’s close. Bond prices closed higher, with the yield on three-year Treasurys decreasing 1.9 basis points to 3.868 percent and the return on the benchmark five-year government bonds dropping 3.2 basis points to 3.929 percent.
This photo from Nov. 7, 2023, shows employees at Hana Bank in Seoul working in front of electronic signboards displaying movements of key market indexes. (Yonhap)
odissy@yna.co.kr
(END)