Seoul: Stocks in Seoul closed lower for the fourth consecutive session on Tuesday, as investors navigated macro uncertainties and the recent calls from artificial intelligence leaders to slow down development. The Korean won weakened against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) dropped by 57.11 points, or 0.85 percent, reaching 6,627.26. The trade volume was relatively light, with 274 million shares traded, valued at 16.2 trillion won (approximately US$11.9 billion). The number of losing stocks surpassed the winners, with 621 stocks declining and 253 advancing.
Retail investors emerged as net buyers, purchasing 833.13 billion won worth of stocks. In contrast, institutional and foreign investors sold a combined net of 2.48 trillion won in shares. Analyst Lee Kyoung-min from Daishin Securities noted that despite the absence of new negative factors, investors remained sensitive to external uncertainties, including interest rates and potential increases in global oil prices.
Brent Crude, the international oil benchmark, increased by around 1.6 percent, surpassing US$107 per barrel, following the breach of 5 percent by the yield on 10-year U.S. Treasurys. Investors are also closely monitoring the Federal Reserve's rate-setting meeting this week, where a rate-hike decision is widely anticipated.
In the Seoul market, most major stocks ended lower. Samsung Electronics, the top-cap stock, edged down 0.2 percent to 248,500 won, while SK hynix decreased by 0.41 percent to 1,690,000 won. Defense companies saw declines due to profit-taking, with Hanwha Aerospace dropping 6.51 percent to 1,063,000 won and LIG Defense and Aerospace falling 4.82 percent to 671,000 won.
Conversely, battery manufacturers experienced gains, fueled by President Donald Trump's formal criticism of Ford Motor Company's business partnership with Chinese automotive firms. LG Energy Solution, a leading battery manufacturer, climbed 3.98 percent to 365,500 won, and Samsung SDI increased by 2.82 percent to 547,000 won.
The Korean won was quoted at 1,359.4 won against the U.S. dollar, marking a decrease of 12.1 won from the previous trading session as of 3:30 p.m.