SEOUL: South Korean stocks tumbled 0.93 percent on Friday as foreigners extended their selling spree to a sixth straight session, analysts said. The won dropped to a new three-year low against the greenback amid expectations of a looming U.S. interest rate rise.
The benchmark Korea Composite Stock Price Index (KOSPI) lost 19.11 points to 2,045.96. Trading volume was heavy at 601.8 million shares worth 6.1 trillion won (US$5.2 billion), with decliners outnumbering gainers 569 to 251.
“(The fall) seems to mostly stem from a strong greenback with rising expectations of a rate hike,” said Kim Ji-hyung, an analyst at Hanyang Securities Co.
“There are also lingering concerns over weak global demand as well as over the remaining process for Greece’s bailout,” he said.
The South Korean economy has been struggling with weakening exports as the Korean won’s rise and feeble global demand dragged down shipments. The export-reliant economy has posted an on-year drop in exports for the six consecutive months since January.
Most large caps ended in negative territory. Samsung Electronics, which is set to release its second-quarter earnings next week, dipped 0.41 percent to 1,229,000 won. Chip giant SK hynix lost 1.15 percent to 38,550 won.
Builders also closed bearish. Hyundai Engineering & Construction, the country’s No. 2 builder, plunged 11.49 percent to 33,500 won. Smaller player Daelim Industrial nosedived 12.33 percent to 72,500 won.
