SEOUL-- South Korean stocks retreated for a third straight session Thursday, as investors worried that the fast recovery from the pandemic is spurring inflation pressure. The Korean won rose against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) fell 15.04 points, or 0.51 percent, to close at 2,947.38 points.
Trading volume was moderate at about 533 million shares worth some 9.9 trillion won (US$8.4 billion), with losers outnumbering gainers 608 to 256.
Foreigners sold a net 47 billion won and institutions offloaded 197 billion won, while retail investors bought 222 billion won.
The key stock index came off to a weak start, tracking overnight losses on Wall Street, with tech and chemical shares weighing on the market.
Local stocks declined as recent estimate-beating economic data in the United States and China fanned concerns that the Federal Reserve may hasten its timeline for raising its key interest rate to vent pressure from the rising inflation rate.
"(The KOSPI) seems to be fluctuating along with the foreign investors' trading, since inflation risks are still lingering on the market," said Mirae Asset Securities analyst Park Gwang-nam.
Trading hours were pushed back by an hour to 10 a.m. to 4:30 p.m., due to the national college entrance exam.
Market bellwether Samsung Electronics decreased 0.71 percent to 70,200 won, No. 2 chipmaker SK hynix lost 0.45 percent to 110,000 won, and pharmaceutical giant Samsung Biologics declined 1.06 percent.
Hyundai Motor, the country's largest carmaker, moved down 0.97 percent to 205,000 won, with its smaller affiliate Kia shedding 1.07 percent to 83,100 won.
Among gainers, electric car battery maker LG Chem added 0.91 percent to 776,000 won, and banking heavyweight Kakao Bank advanced 2.22 percent to 64,500 won.
The local currency closed at 1,180.4 won against the U.S. dollar, up 2.1 won from the previous session's close.
Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys lost 2.1 basis points to 1.953 percent, and the return on the benchmark five-year government bond fell 0.3 basis point to 2.156 percent.
Source: Yonhap News Agency