Seoul: South Korean stocks ended lower Tuesday, breaking a remarkable 12-day winning streak as investors took profits in major semiconductor and automotive sectors. The local currency also depreciated against the U.S. dollar.
According to Yonhap News Agency, after a volatile trading session, the Korea Composite Stock Price Index (KOSPI) fell by 18.91 points, or 0.39 percent, closing at 4,885.75. Earlier in the day, the index reached an all-time intraday high of 4,935.48. The KOSPI had been on an upward trajectory for 12 consecutive sessions up to Monday, with a gain exceeding 16 percent.
Trading activity was robust with a volume of 648.7 million shares worth 26.9 trillion won (approximately US$18.2 billion). The number of advancing stocks significantly outnumbered those declining, with 666 gainers against 228 losers. Institutional investors were net sellers, offloading 606.2 billion won worth of local shares, whereas retail and foreign investors were net buyers, acquiring 352.7 billion won and 79.3 billion won, respectively.
The index started the day on a lower note due to profit-taking, mirroring corrections in global markets amid increasing geopolitical concerns, including U.S. President Donald Trump's interest in Greenland. Although KOSPI reached a record high during the session, it ultimately ended in negative territory as selling pressure affected large-cap semiconductor and automotive stocks.
"Semiconductor giants that led gains earlier this year are taking a breather after reaching record highs," said Lee Kyung-min, an analyst at Daishin Securities. The semiconductor sector saw a downturn, with industry leader Samsung Electronics dropping by 2.75 percent to 145,200 won, and SK hynix, the second-largest market cap, also falling 2.75 percent to 743,000 won.
The automotive sector also witnessed declines. Hyundai Motor, a leading carmaker, decreased by 0.21 percent to 479,000 won, while its affiliate Kia dropped 3.3 percent to 163,900 won. Contrasting these declines, the state-run utility firm KEPCO surged by 16.16 percent to 65,400 won.
The local currency was quoted at 1,478.7 won against the U.S. dollar by 3:30 p.m., marking a decrease of 5 won from the previous session. In the bond market, prices moved inversely to yields, which closed lower. The yield on three-year Treasurys increased by 6.1 basis points to 3.191 percent, and the return on five-year government bonds rose by 8.3 basis points to 3.472 percent.