Seoul:South Korean stocks fell by 0.6 percent on Thursday, ending a two-day rally as concerns over Nvidia's leadership impacted the market. The local currency, however, showed an upward trend against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) closed down 32.63 points, or 0.61 percent, at 5,342.73. This decline followed a 4.39 percent rise on Tuesday and a 2.6 percent gain on Wednesday. Nvidia's board is reportedly preparing to replace CEO Jensen Huang amid reports of his alleged extramarital affairs, affecting investor sentiment due to the company's business ties with Korean tech firms.
The market saw light trade volume with 233.7 million shares worth 20.6 trillion won (approximately US$15.5 billion). Declining stocks outnumbered advancing ones, with 595 losers against 268 gainers. Foreign investors purchased a net 370.4 billion won worth of shares, while institutions and individuals sold a net 690.3 billion won and 204.3 billion won, respectively.
Semiconductor-related stocks mostly closed lower, although Samsung Electronics rose by 0.97 percent to 208,000 won. SK hynix saw a decline of 1.8 percent to 1.25 million won, and Hanmi Semiconductor dipped by 1.14 percent to 181,900 won. Samsung Electro-Mechanics dropped 4.01 percent to 886,000 won, while SK Square fell 0.63 percent to 791,000 won.
Naver, where Nvidia is a significant shareholder, saw its shares plunge by 6.43 percent to 181,800 won. Defense sector shares also weakened, with Hanwha Aerospace decreasing by 0.76 percent to 654,000 won and LIG D&A down by 2.02 percent to 364,500 won.
The exchange rate was quoted at 1,330.7 won against the U.S. dollar, an increase of 2.9 won from the previous close. Bond prices ended mixed, with the yield on three-year Treasurys remaining at 3.729, and the five-year government bonds' yield decreasing by 0.7 basis points to 3.803.