Seoul: Seoul stocks closed sharply down Friday to snap their 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. The trade volume was light at 287.6 million shares valued at 19.9 trillion won (US$14.5 billion). Despite the downturn, winners outnumbered losers 638 to 237.
Foreign and institutional investors were net sellers, offloading a combined 2 trillion won. However, retail investors remained optimistic, snapping 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," said Lee Kyoung-min, an analyst from Daishin Securities.
U.S. Federal Reserve Chair Kevin Warsh is scheduled to deliver his first keynote speech at the high-profile Jackson Hole meeting, which could provide insights into the central bank's future policy direction. Meanwhile, the Trump administration clarified that the United States and Iran are not currently in talks to end the ongoing conflict. Reports also indicated that Washington is considering a new round of tariffs on semiconductors, adding further uncertainties to the market.
The tech sector saw significant declines, with market leader Samsung Electronics falling 3.38 percent to 257,000 won and industry competitor SK hynix dropping 4.45 percent to 1,653,000 won. In contrast, cosmetics and refiners experienced gains. Cosmetics firm APR rose 6.21 percent to 461,500 won, driven by earnings momentum, while refiner S-Oil increased 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 following the announcement of 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.