Seoul Shares Decline Amid Economic Growth Concerns and Rate Speculations

Seoul: Seoul shares closed lower on Thursday, driven by losses in the technology sector amid concerns over economic growth and diminishing expectations for interest rate cuts by the Federal Reserve. However, the Korean won managed to break its eight-day losing streak against the U.S. dollar. According to Yonhap News Agency, the Korea Composite Stock Price Index dropped by 18.59 points, or 0.7 percent, settling at 2,581.03. The trading volume was moderate, with 336.43 million shares exchanged, valued at 9.47 trillion won (approximately US$6.9 billion). The market saw 613 stocks declining compared to 256 that advanced. Institutional and foreign investors sold a combined total of 653 billion won in stocks, counteracting the 621 billion won in purchases made by individual investors. Overnight, U.S. markets experienced declines, with the Dow Jones Industrial Average falling by 0.96 percent to 42,514.95 and the Nasdaq Composite dropping 1.6 percent to 18,276.65. Earlier in the day, the Bank of Korea announced tha t the nation's economy, the fourth largest in Asia, narrowly avoided a contraction in the third quarter, growing by only 0.1 percent on a quarterly basis, which was significantly below the market median expectation of a 0.5 percent increase. In the local market, technology and automotive stocks were the primary drivers of the decline. Samsung Electronics Co., a leading market player, saw its stock fall by 4.2 percent to 56,600 won. SK hynix Inc., the second-largest chipmaker, decreased by 1.1 percent to 198,200 won. Hyundai Motor Co., a major car manufacturer, dropped by 5.2 percent to 228,500 won, while SK Innovation Co., a top refiner, fell by 0.8 percent to 115,300 won. Conversely, Korea Zinc Co., the world's leading zinc smelter, experienced a significant surge, hitting the daily upward limit of 30 percent to reach 1,138,000 won. Korea Electric Power Corp., a state utility, rose by 5 percent to 23,050 won, and Korean Air Co., the national flag carrier, increased by 0.6 percent to 23,450 won. Korea Zinc 's shares rose as investors anticipated the results of a share buyback initiative led by Chairman Choi Yun-beom to fend off a takeover bid by Young Poong Corp and private equity firm MBK Partners. The closing price on Thursday, which was well above the 890,000 won buyback offer, suggested that investors expected a potentially higher offer as the control battle intensified, according to analysts. Korea Zinc has been engaged in a takeover battle with MBK and Young Poong. In a recent tender offer that concluded last week, Young Poong and MBK acquired a 5.34 percent stake in Korea Zinc at 830,000 won per share, increasing their total holding to over 38 percent. Chairman Choi and his family currently hold a 15.6 percent stake in the company. Korea Zinc's friendly shares, including those held by the Choi family, are estimated to reach a 34-36 percent stake. At 3:30 p.m., the won was trading at 1,380.20 won against the U.S. dollar, an increase of 2 won from the previous session.