Seoul: South Korean stocks ended a three-session winning streak Friday on profit-hunting as investors sat on the sidelines amid diplomatic moves for a possible second round of U.S.-Iran peace talks. The local currency fell against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) dropped 34.13 points, or 0.55 percent, to finish at 6,191.92.
According to Yonhap News Agency, the index had risen for three consecutive sessions, closing above the 6,200-point mark Thursday for the first time since the outbreak of the U.S.-Iran conflict on February 28. The KOSPI's all-time closing high stands at 6,307.27, set on February 26. Trading volume was moderate at 680.2 billion shares worth 22.8 trillion won (US$15.4 billion), with gainers beating decliners 463 to 389. Foreign investors sold a net 2 trillion won worth of stocks, while institutions acquired a net 150.3 billion won and individuals bought a net 1.4 trillion won.
U.S. President Donald Trump expressed optimism for another round of peace negotiations with Iran over the weekend, coinciding with a 10-day ceasefire announcement by Israel and Lebanon. "The KOSPI took a breather before reclaiming its all-time high amid rising hopes for a second round of peace talks between Washington and Tehran," said Kang Jin-hyuk, an analyst at Shinhan Securities Co.
Most market heavyweights ended in negative territory. Tech giant Samsung Electronics fell 0.69 percent to 216,000 won, and SK hynix, its chipmaking rival, lost 2.34 percent to 1.1 million won. Defense shares were among the biggest losers, with industry leader Hanwha Aerospace sinking 6.32 percent to 1.4 million won, and Korea Aerospace Industries (KAI) dipping 0.79 percent to 188,400 won. Energy company Doosan Enerbility decreased 2.08 percent to 108,500 won, while Samsung Bioepis Holdings, a biosimilar manufacturing unit under Samsung Group, dropped 2.96 percent to 591,000 won. Internet giant Naver declined 0.96 percent to 216,500 won, and gamemaker NC retreated 1.5 percent to 262,500 won.
However, top carmaker Hyundai Motor rose 0.75 percent to 538,000 won, and leading shipyard HD Hyundai Heavy Industries added 4.15 percent to 514,000 won. The local currency was quoted at 1,483.5 won against the greenback as of 3:30 p.m., down 8.9 won from the previous session. Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys increased by 3.1 basis points to 3.371 percent, and the return on the benchmark five-year government bonds rose by 4.4 basis points to 3.580 percent.