Seoul:Seoul shares closed lower on Thursday, marking a third consecutive session of losses as rising oil prices fueled inflation concerns. The Korean won, however, saw an increase against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) initially opened 0.07 percent higher but ended the day down 177.97 points, or 2.62 percent, at 6,625.93. This decline follows a drop in the Dow Jones Industrial Average by 0.66 percent and a 0.22 percent decrease in the Nasdaq Composite overnight.
Institutional and foreign investors sold stocks totaling a net 1.67 trillion won (approximately US$1.24 billion) and 1.99 trillion won, respectively. In contrast, individual investors bought stocks worth a net 2.9 billion won. The market's cautious sentiment stems from concerns about the impact of higher oil prices on inflation, alongside signals from the U.S. Federal Reserve regarding potential rate hikes to control inflation.
In the Seoul market, technology stocks experienced significant declines. Samsung Electronics, a market leader, saw its shares fall by 2.42 percent to 262,000 won, while SK hynix, a competitor in chipmaking, decreased by 2.44 percent to 1.68 million won. Hanwha Aerospace, a major player in the defense sector, dropped 8.33 percent to 891,000 won, and HMM, a shipping company, declined by 2.8 percent to 20,800 won.
Conversely, some companies saw gains. Samsung SDI, a battery manufacturer, rose by 1.25 percent to 569,000 won, and LG Energy Solution, a leading battery maker, increased by 2.56 percent to 401,000 won.
By 330 p.m., the Korean won was trading at 1,338.5 won against the U.S. dollar, an improvement from the previous session's close of 1,340.4 won.