Seoul:Seoul shares ended lower on Thursday, marking a third consecutive session of losses as heightened oil prices fueled concerns over inflation. In contrast, the Korean won gained against the U.S. dollar.
According to Yonhap News Agency, the Korea Composite Stock Price Index (KOSPI) opened 0.07 percent higher but eventually fell by 177.97 points, or 2.62 percent, closing at 6,625.93. This decline occurred alongside a 0.66 percent drop in the Dow Jones Industrial Average and a 0.22 percent decrease in the Nasdaq Composite.
Institutional investors and foreigners sold stocks worth a net 1.67 trillion won (approximately US$1.24 billion) and 1.99 trillion won, respectively. In contrast, individual investors purchased a net 2.9 billion won worth of stocks. Investor apprehension grew as rising oil prices contributed to inflationary pressures, with the U.S. Federal Reserve indicating possible rate hikes this year to curb inflation.
In Seoul, technology stocks were the primary contributors to the decline. Samsung Electronics saw a decrease of 2.42 percent to 262,000 won, while SK hynix dropped 2.44 percent to 1.68 million won. Hanwha Aerospace, a major player in the defense sector, fell 8.33 percent to 891,000 won, and shipping company HMM declined 2.8 percent to 20,800 won.
On the other hand, some companies experienced gains. Samsung SDI, a battery manufacturer, rose 1.25 percent to 569,000 won, and LG Energy Solution increased by 2.56 percent to 401,000 won.
The exchange rate for the Korean won was 1,338.5 won against the U.S. dollar at 330 p.m., compared to 1,340.4 won at the previous session's close. Bond prices fell, with the yield on three-year Treasurys rising 2.2 basis points to 3.983 and the return on five-year government bonds increasing by 2.4 basis points to 4.158.