Seoul: South Korean stocks fell Thursday, snapping a three-session winning streak and retreating from record highs as investors locked in profits. The local currency fell sharply against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) dropped 162.08 points, or 1.84 percent, to close at 8,639.41.
According to Yonhap News Agency, trade volume was moderate at 431.77 million shares worth 46.2 trillion won (US$30.2 billion), with winners slightly outnumbering losers 446 to 444. Institutions and individuals bought a net 1.81 trillion won and 5.01 trillion won, respectively, while foreigners alone sold a net 6.95 trillion won, extending their selling streak to a 19th consecutive session.
On Tuesday, the KOSPI had closed above the 8,800-point mark for the first time, primarily driven by gains in technology stocks. The local stock market was closed Wednesday for elections. On Thursday, the index opened lower, tracking overnight losses on Wall Street amid concerns over escalating tensions between the United States and Iran, which could undermine prospects for a peace agreement.
"The KOSPI came under pressure from profit-taking as concerns grew that the recent rally had become overheated," said Lee Kyung-min, an analyst at Daeshin Securities. In Seoul, large-cap shares closed lower. Market bellwether Samsung Electronics went down 2.5 percent to 351,500 won, while its rival chipmaker SK hynix fell 2.63 percent to 2,298,000 won.
Top automaker Hyundai Motor shed 3.98 percent to 700,000 won, and electronic components maker Samsung Electro-Mechanics lost 5.35 percent to 1,716,000 won. Samsung Life Insurance decreased 8.75 percent to 438,000 won following the previous session's sharp gain.
The Korean won was quoted at 1,529.7 won against the U.S. dollar at 3:30 p.m., down 13.7 won from the previous session. Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys gained 8.5 basis points to 3.858 percent, while the return on the benchmark five-year government bonds increased 10.9 basis points to 4.078 percent.