Seoul: South Korean stocks closed lower Wednesday, extending their losses for a second straight session, as foreign investors continued heavy selling. The local currency gained ground against the U.S. dollar. After choppy trading, the benchmark Korea Composite Stock Price Index (KOSPI) lost 62.71 points, or 0.86 percent, to close at 7,208.95. Trade volume was moderate at 485.9 million shares worth 39.5 trillion won (US$26.2 billion), with losers far outnumbering winners 811 to 90.
According to Yonhap News Agency, the index opened 0.72 percent higher but turned lower within about three minutes of trading. It later plunged to as low as 7,053.84 at one point. Overnight, U.S. stocks extended their decline from recent record highs as rising U.S. Treasury yields and persistent inflation concerns, caused by high oil prices amid the extended tensions in the Middle East, continued to weigh on investor sentiment.
"Foreign investors continued to pull out as rising U.S. Treasury yields and a higher foreign exchange rate weighed on market sentiment, pushing all sectors into negative territory," Lee Kyung-min, an analyst at Daishin Securities, said. Foreign investors alone sold a net 2.93 trillion won worth of local shares, focusing on chipmakers and other market heavyweights, extending their selling streak to a 10th consecutive session. Institutional and retail investors purchased a net 1.1 trillion won and 1.7 trillion won, respectively.
Most market heavyweights traded mixed. After volatile trading, shares of Samsung Electronics inched up 0.18 percent to close at 276,000 won after talks with its largest labor union broke down, a day ahead of a planned major strike at the world's largest memory chipmaker. Management, however, said it will continue negotiations, asserting that a strike should not take place under any circumstances.
Its chipmaking rival SK hynix was unchanged at 1,745,000 won. Artificial intelligence investment firm SK Square went up 0.88 percent to 1.023 million won, while leading battery maker LG Energy Solution slipped 3.88 percent to 384,500 won. Auto shares were also among the losers, with giant Hyundai Motor losing 1.99 percent to 592,000 won and its smaller affiliate Kia going down 3.55 percent to 149,400 won.
The Korean won was quoted at 1,506.8 won against the U.S. dollar at 3:30 p.m., up 1 won from the previous session.