Seoul: Seoul stocks closed sharply down Friday, snapping a three-day winning streak as investors sold off tech heavyweights amid external uncertainties, such as Washington's trade policy. The Korean won rose against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) closed down 123.49 points, or 1.79 percent, to 6,788.88. Trade volume was light at 287.6 million shares worth 19.9 trillion won (US$14.5 billion), with winners outnumbering losers 638 to 237. Foreign and institutional investors were net sellers, offloading a combined 2 trillion won, whereas retail investors snapped up a net 424.36 billion won.
"Investor sentiment was dampened amid external uncertainties, while many maintained a wait-and-see stance ahead of the Jackson Hole meeting tonight," Lee Kyoung-min, an analyst from Daishin Securities, remarked. U.S. Fed Chair Kevin Warsh is set to make his first keynote speech at the high-profile meeting, which could provide hints to the central bank's next policy direction.
Meanwhile, the Donald Trump administration stated that the United States and Iran are not in talks to end the war. Reports also indicated that Washington is considering a new round of tariffs on semiconductors, adding further uncertainties to the market. Tech shares declined, while cosmetics and refiners strengthened.
Market top-cap Samsung Electronics fell 3.38 percent to 257,000 won, while industry rival SK hynix shed 4.45 percent to 1,653,000 won. Conversely, cosmetics firm APR rose 6.21 percent to 461,500 won, boosted by earnings momentum, along with refiner S-Oil, which moved up 9.14 percent to 149,200 won amid re-escalating tensions in the Middle East. Bio firm Samsung Biologics fell 6.65 percent to 1,486,000 won after announcing a 3 trillion won rights offering.
The Korean won was quoted at 1,372.5 won against the U.S. dollar, up 8.4 won from the previous stock trading session. Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose 3.3 basis points to 3.788 percent, and the return on the benchmark five-year government bonds added 4.7 percentage points to 4.021 percent.