Seoul Stocks Dip as Tech and Financial Sectors Weigh on Market

Seoul: South Korean stocks closed lower on Wednesday, reversing a two-day upward trend as tech and financial sectors faced declines. The Korea Composite Stock Price Index (KOSPI) fell by 23.09 points, or 0.88 percent, to finish at 2,610.36. The downturn in the market was primarily led by significant losses in technology stocks, fueled by overarching concerns regarding their future earnings. Additionally, the local currency, the won, depreciated against the U.S. dollar. According to Yonhap News Agency, the trading volume was recorded at 429.5 million shares, valued at approximately 9.8 trillion won (US$7.2 billion), with the number of stocks declining outnumbering those advancing 551 to 323. The drop in the stock market was predominantly driven by foreign investors who sold a net total of 664.3 billion won. Conversely, individual investors purchased a net total of 655.5 billion won, while institutional investors sold off a net of 35 billion won. The U.S. stock market also experienced a downturn, impacting global market sentiments. The Dow Jones Industrial Average closed down by 0.75 percent, while the Nasdaq Composite, known for its tech-heavy listing, tumbled by 1.01 percent. This was largely due to a poorer-than-expected earnings outlook from ASML Holdings, a major player in the chip equipment manufacturing sector. In Seoul, major tech companies faced significant losses. Samsung Electronics, a leading memory chipmaker, saw its shares drop by 2.46 percent to 59,500 won. Similarly, SK hynix, another key player in the semiconductor industry, experienced a decline of 2.18 percent to 188,700 won. Hanmi Semiconductor also reported a sharp fall of 2.95 percent, closing at 108,700 won. The financial sector was not spared from the market slump, with major firms like Shinhan Financial Group and food and beverage giant Nongshim witnessing declines of 2.42 percent and 1.3 percent, respectively. However, not all was bleak as LG Energy Solution, a leading battery maker, saw a marginal increase of 0.25 percent, and Hyun dai Mobis, an auto parts affiliate of Hyundai Motor, surged by 7.81 percent. In currency markets, the won weakened, trading at 1,362.6 to the U.S. dollar by the late afternoon, a decrease of 1.3 won from the previous session. Meanwhile, bond prices saw an uptick, with yields on three-year Treasurys dropping by 2.6 basis points to 2.880 percent and those on five-year government bonds decreasing by 3.9 basis points to 2.924 percent.