Seoul shares ended lower Monday amid concerns that the Federal Reserve may continue its aggressive monetary tightening and China could return to harsh restrictions after COVID-19-related deaths. The Korean won fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) fell 24.98 points, or 1.02 percent, to close at 2,419.50
Trading volume was light at about 533.38 million shares worth some 6.94 trillion won (US$5.1 billion), with losers outnumbering gainers 661 to 207.
This week, investors will focus on minutes of the Fed’s latest policy meeting for clues on the course of rate hikes. News of China’s COVID-19 situation was also weighing on their sentiment.
China reported its first pandemic-related death in nearly six months on Saturday and additional such deaths on Sunday.
“Investors sought shelter in safe haven assets such as Treasurys and the dollar away from risky assets in emerging markets,” Choi Yoon-ah, an analyst at Shinhan Securities Co., said.
Foreigners sold a net 162 billion won worth of stocks, exceeding institutions and individuals’ combined stock purchases valued at 144.78 billion won.
Most large-cap stocks declined.
Market bellwether Samsung Electronics Co. fell 0.7 percent to 61,400 won, No. 2 chipmaker SK hynix Inc. declined 2.4 percent to 86,300 won, top carmaker Hyundai Motor Co. shed 0.9 percent to 168,000 won, and leading car battery maker LG Energy Solution dropped 4.2 percent to 573,000 won.
Among gainers, the country’s sole aircraft manufacturer Korea Aerospace Industries Co. rose 0.2 percent to 45,950 won, refiner S-Oil Corp. climbed 0.3 percent to 88,500 won, and leading beverage firm Hitejinro Co. was up 0.6 percent to 26,800 won.
The local currency ended at 1,354.70 won against the U.S. dollar, down 14.40 won from the previous session’s close.
Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose 5 basis points to 3.837 percent, and the return on the benchmark five-year government bond climbed 1.3 basis points to 3.863 percent.
Source: Yonhap News Agency