Search
Close this search box.
Seoul Shares Decline Over 1 Percent on Profit-Taking


Seoul: South Korean stocks closed over 1 percent lower Thursday as investors took profit following strong gains in the previous session despite an overnight rally on Wall Street. The local currency gained against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) dropped 31.57 points, or 1.24 percent, to close at 2,515.49.



According to Yonhap News Agency, trade volume was moderate at 594.7 million shares worth 9.7 trillion won (US$6.751 billion), with decliners beating gainers 696 to 190. Institutions and foreign investors combined unloaded a net 820 billion won, while retail investors purchased a net 757.8 billion won. Overnight, U.S. stocks were buoyed by optimism surrounding joint artificial intelligence (AI) investments by OpenAI, Oracle, and SoftBank, which was touted by President Donald Trump. The S and P 500 rose 0.61 percent, reaching its highest level in over a month, while the Dow Jones Industrial Average and Nasdaq climbed 0.30 percent and 1.28 percent, respectively.



Analysts said the sell-off was likely prompted by strong gains in the previous session. On Wednesday, the KOSPI rose 1.15 percent to reach a two-month high on eased U.S. tariff concerns. Han Ji-young, an analyst at Kiwoom Securities, said investors also seem to have adjusted their investment portfolios ahead of the extended Lunar New Year holiday, starting Saturday. In Seoul, most shares lost ground, led by losses among chipmakers. Market heavyweight Samsung Electronics plummeted 1.1 percent to 53,700 won, while chip rival SK hynix plunged 2.66 percent to 219,500 won despite having reported stellar earnings before the opening of the market.



Shipbuilders and steelmakers also retreated. Top steelmaker POSCO Holdings fell 1.7 percent to 259,500 won, and Hanwha Ocean slipped 2.65 percent to 51,500 won. Bio-related shares, meanwhile, advanced, with industry leader Samsung Biologics surging 3.85 percent to 1,053,000 won after reporting record earnings in the previous session. The local currency was trading at 1,437.3 won against the U.S. dollar at 11:20 a.m., up 0.3 won from the previous session. Bond prices, which move inversely to yields, fell. The yield on three-year Treasurys rose 0.1 basis point to 2.578 percent, and the return on the benchmark five-year government bonds gained 0.5 basis point to end at 2.695 percent.

ADVERTISEMENT