Seoul, South Korea – South Korean stock market's downward trend continued for the eighth consecutive session on Friday, experiencing the longest losing streak in over 18 months. This decline comes in the wake of unexpectedly strong inflation data from the United States and weaker corporate earnings, leading to a fall in the Korean won against the U.S. dollar.
According to Yonhap News Agency, The benchmark Korea Composite Stock Price Index (KOSPI) dropped 15.22 points, or 0.60 percent, closing at 2,525.05. This marks the first time since May 2022 that the KOSPI has seen such a prolonged downturn.
According to trade volume data, there was moderate activity with 772.4 million shares traded, valued at 8.18 trillion won (approximately US$6.23 billion). In this session, there were more stocks declining than gaining, with 620 losers compared to 269 gainers.
Institutional investors were net sellers for the eighth straight session, unloading shares worth 193.7 billion won. Foreign investors also joined this trend, selling off 213.5 billion won worth of shares. In contrast, retail investors picked up a net total of 404.2 billion won in shares.
Investors' concerns were primarily fueled by the latest U.S. consumer price inflation data for December, which came in higher than expected. This development dampened expectations that the U.S. Federal Reserve might reduce interest rates in the near future. Additionally, lackluster corporate earnings reports also dampened market sentiment.
Sector-wise, technology, automobile, and platform shares were among the hardest hit in Seoul's market. Samsung Electronics, a global leader in memory chip production, experienced a 0.14 percent decrease in its shares, closing at 73,100 won. This followed the company's projection of a 35 percent decline in operating profits year-over-year for the fourth quarter, indicating ongoing challenges in the semiconductor sector.
Other notable decliners included SK hynix, which fell 1.40 percent to 134,100 won, and leading pharmaceutical company Celltrion, which saw a 3.95 percent drop to 196,900 won. In the automotive sector, Hyundai Motor and its affiliate Kia Motors also witnessed declines in their share prices.
The South Korean won ended the trading session at 1,313.50 against the U.S. dollar, a slight depreciation from the previous session's close.