SEOUL: South Korean stocks closed 0.81 percent lower Thursday as investors dumped major exporters — tech and auto stocks — out of concerns over their earnings, analysts said. The local currency rose against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) plunged 16.47 points to 2,013.29. Trading volume was moderate at 335.32 million shares worth 5.81 trillion won (US$4.98 billion), with gainers outpacing losers 406 to 403.
Market players are raising the possibility that the U.S. Fed may seek to raise its key interest rate in September, a move that may push up the greenback against the local currency and have an adverse impact on exporters.
“The uncertainties in the U.S. key interest rate, and the downbeat earnings forecast dented investor sentiment,” said Seo Myong-chan, an analyst at Kiwoom Securities Co.
Foreigners sold more shares than they bought at 85.7 billion won, while retail investors scooped up a net 175.9 billion won. Institutions sold a net 158.6 billion won.
Tech and auto stocks led the overall market decline. Market behemoth Samsung Electronics closed 3.8 percent lower at 1,115,000 won, marking the lowest figure since 1,091,000 won posted on Oct. 28, 2014.
Chipmaker SK hynix moved down 3.22 percent to 36,100 won with No. 2 tech firm LG Electronics losing 0.84 percent to 41,150 won.
Carmakers also closed bearish, with No. 1 Hyundai Motor losing 4.12 percent to 139,500 won and Kia Motors moving down 1.62 percent to 42,450 won. Top auto parts maker Hyundai Mobis shed 1.67 percent to 206,500 won.
Affiliates of Lotte Group lost ground amid an ongoing battle among the owner family members to win control over the country’s fifth-largest conglomerate. Lotte Chemical lost 0.41 percent to 242,500 won while Lotte Confectionery moved down 6.36 percent to 1,767,000 won.
