SEOUL — The Seoul stock market ended its session lower on Wednesday, halting a three-day streak of gains as optimism for an early rate cut diminished. This shift in sentiment followed robust economic data from the United States, fueling speculation that the U.S. Federal Reserve might maintain higher interest rates for an extended period. Despite the downturn, the Korean won strengthened against the U.S. dollar.
According to Yonhap News Agency, The Korea Composite Stock Price Index (KOSPI) fell by 46.19 points, a decrease of 1.68 percent, to close at 2,706.97. Trading volume was substantial, with 628.41 million shares changing hands, valued at approximately 12.74 trillion won (US$9.4 billion). Decliners outnumbered gainers, with 632 stocks closing lower compared to 246 that advanced. Institutional and foreign investors collectively purchased stocks worth 947 billion won, somewhat offsetting the 924 billion won worth of stocks bought by individual investors.
Analysts attribute the selling pressure to strong manufacturing data from both the U.S. and China, coupled with the expectation that the Federal Reserve is not in a hurry to lower interest rates. As a result, some investors decided to capitalize on recent gains. In the stock market, technology, battery, and automobile sectors led the declines, with major companies like Samsung Electronics, SK hynix, LG Energy Solution, and Hyundai Motor experiencing notable drops in their stock prices. However, some firms, including HD Hyundai, Asiana Airlines, and Amorepacific Corp, saw slight increases in their share prices.
The Korean won concluded the trading day at 1,348.90 won against the dollar, marking an appreciation of 3.2 won from the previous session's close. In the bond market, yields on government securities, such as the three-year Treasurys, rose marginally, indicating a decline in bond prices.