SEOUL – The Seoul stock market closed down over 1 percent on Monday, driven by significant losses in semiconductor stocks and a decline in the local currency against the U.S. dollar.
According to Yonhap News Agency, an analyst at Kiwoom Securities, the decline was influenced by growing market uncertainties following U.S. President Joe Biden's decision to end his reelection campaign. The Korea Composite Stock Price Index (KOSPI) fell by 31.95 points, or 1.14 percent, ending the day at 2,763.51. Trade volume was moderately active with 456.1 million shares valued at 10.3 trillion won (approximately US$7.42 billion) changing hands. Notably, institutional and foreign investors sold off 105.3 billion won worth of stocks, while retail investors picked up 137.8 billion won in shares.
The semiconductor sector saw notable declines with Samsung Electronics dropping 1.66 percent to 83,000 won and SK hynix falling 2.15 percent to 205,000 won. The battery and energy sectors also faced downturns; LG Energy Solution plunged 4.92 percent after halting construction of a joint U.S. plant with General Motors due to a slowdown in the electric vehicle market. Similarly, Samsung SDI decreased by 4.2 percent, SK Innovation by 3.93 percent, LG Chem by 4.05 percent, and Hyundai Motor slipped 1.35 percent.
The won weakened to 1,388.2 against the dollar by the close of trading, down from the previous session. In contrast, bond prices rose, with yields on three-year Treasury bonds decreasing slightly by 0.3 basis points to 3.071 percent, and five-year government bonds falling 0.8 basis points to 3.091 percent.