SEOUL — Seoul's stock market ended its session lower on Wednesday, as foreign investors took profits after a two-day rally, despite positive movements on Wall Street the previous night. The benchmark Korea Composite Stock Price Index (KOSPI) dropped by 22.80 points, a 0.8 percent decline, finishing at 2,843.29.
According to Yonhap News Agency, foreign investors sold off 261.4 billion won worth of shares, which overshadowed the combined net buying of 248.9 billion won by retail investors and institutions. This sell-off occurred amidst a global atmosphere of optimism, with Wall Street seeing gains due to heightened expectations of a Federal Reserve rate cut. The Dow Jones Industrial Average notably jumped 1.9 percent to reach a new high, while the S&P 500 and Nasdaq composite saw more modest increases of 0.2 percent and 0.6 percent, respectively.
Despite recent gains, Seoul's market faced downward pressure, particularly in sectors like technology and automotive. Notable losses included Samsung Electronics, which fell by 1.14 percent, and Hyundai Motor, which dropped by 2.19 percent. Battery producers also saw declines, with LG Energy Solution and Samsung SDI decreasing by 2.89 percent and 1.11 percent, respectively.
Conversely, SK Innovation experienced a significant rise of 5.65 percent ahead of crucial board meeting decisions regarding its impending merger with SK E&S, which is anticipated to create a major energy conglomerate. Additionally, shipbuilding stocks like Samsung Heavy Industries and HD Hyundai Heavy Industries performed well, gaining 6.32 percent and 2.21 percent, respectively.
The local currency, the won, strengthened against the U.S. dollar, trading up by 3.4 won to 1,381.5 won at the close of the market. Meanwhile, bond prices declined, with yields on three-year Treasury bonds and the benchmark five-year government bonds rising slightly.