SEOUL– South Korean stocks retreated Tuesday as investors attempted to lock in gains from the recent tech rally. The Korean won fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) lost 15.92 points, or 0.53 percent, to close at 2,997.33 points.
Trading volume was moderate at about 516 million shares worth some 10.7 trillion won (US$9 billion), with losers outnumbering gainers 499 to 361.
Foreigners bought a net 280 billion won and retail investors purchased 380 billion won, while institutions sold a net 695 billion won.
“The overnight jump in the 10-year Treasury yields in the United States seems to have driven investors to sell local stocks with high price-to-earnings ratio (PER),” said Mirae Asset Securities analyst Park Gwang-nam.
Overnight, the tech-heavy Nasdaq composite lost 1.26 percent amid lingering inflation concerns. The Dow Jones Industrial Average edged up 0.05 percent.
In Seoul, top cap Samsung Electronics added 0.53 percent to 75,300 won, but No. 2 chipmaker SK hynix decreased 0.42 percent to 119,000 won.
Internet portal operator Naver declined 2.44 percent to 400,000 won, leading chemical firm LG Chem slumped 3.27 percent to 740,000 won, and pharmaceutical giant Samsung Biologics dropped 2.4 percent to 855,000 won.
Top automaker Hyundai Motor moved down 1.6 percent to 215,000 won.
The local currency closed at 1,189.7 won against the U.S. dollar, down 4.6 won from the previous session’s close.
Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose 1.3 basis points to 2.031 percent, and the return on the benchmark five-year government bond added 1.5 basis points to 2.253 percent.
Source: Yonhap News Agency