KOSPI Declines as Foreign Investors Sell Off Tech and Battery Stocks

Seoul: South Korean stocks closed lower Friday, continuing a downward trend for the third consecutive day driven by foreign sell-offs in major tech and battery companies. The Korea Composite Stock Price Index (KOSPI) fell by 15.48 points, or 0.59 percent, ending the day at 2,593.82. The local currency, the South Korean won, also weakened against the U.S. dollar. According to Yonhap News Agency, the trading session began with a slight increase in the KOSPI, but the gains were quickly erased as foreign investors began offloading shares. The total trade volume was relatively low, with 259.1 million shares changing hands, valued at approximately 8.1 trillion won (US$5.9 billion). The market dynamics showed a significant imbalance, with 589 stocks declining and only 267 advancing. This sell-off was particularly pronounced in the semiconductor and battery sectors. Market leaders such as Samsung Electronics and SK hynix saw substantial losses, dropping 0.84 percent and 4.44 percent, respectively. Hanmi Semiconduct or experienced a notable decline, plummeting 10.4 percent. In the battery sector, LG Energy Solution and Samsung SDI also faced downturns, with respective declines of 2.14 percent and 1.2 percent. The automotive industry was not spared, with Hyundai Motor and Kia recording losses as well. However, there were some sectors that resisted the downward trend. Samsung Biologics, a major biotechnology company, saw its shares increase by 3.31 percent. Additionally, gains were noted in the financial sector, with KB Financial and Meritz Financial rising by 0.75 percent and 2.22 percent, respectively. In contrast to the local market's performance, the Dow Jones Industrial Average in the United States achieved a new high, rising by 0.37 percent to close at 43,239.05, buoyed by better-than-expected consumer spending figures released by the U.S. Department of Commerce. The foreign sell-off in South Korea's stock market resulted in a net sale of 479.7 billion won worth of shares, which was only partially offset by purcha ses from retail investors and institutions totaling 455.9 billion won. The South Korean won closed weaker at 1,369.7 against the U.S. dollar, down by 1.1 won from the previous session. In the bond markets, prices fell as yields rose. The yield on three-year Treasury bonds increased slightly by 1.1 basis points to 2.908 percent, and the yield on five-year government bonds went up by 2.5 basis points to 2.971 percent.