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An electronic board showing the Korea Composite Stock Price Index at a dealing room of the Hana Bank headquarters in Seoul on Monday. (Yonhap) |
South Korean shares closed slightly lower for the second straight day on Monday as investors sought to cash in on recent gains after Federal Reserve Chair Jerome Powell hinted at a potential rate cut next month. The local currency rose to its highest level in over five months against the US dollar.
The benchmark Korea Composite Stock Price Index lost 3.68 points, or 0.14 percent, to close at 2,698.01.
Trade volume was moderate at 329 million shares worth 8.97 trillion won ($6.77 billion), with losers outnumbering gainers 509 to 376.
Foreign investors extended their selling streak to a second consecutive session, offloading a net 467 billion won worth of local shares, while institutions remained net buyers for a third consecutive session, scooping up 400 billion won. Retail investors purchased a net 97 billion won.
The index had opened higher, tracking sharp advances on Wall Street on Friday, prompted by remarks from Powell that hinted at a potential US rate cut as early as next month.
"The easing policy stance had already been reflected in the market," KB Securities analyst Lee Eun-taek said in a report. "What is important from now are fundamentals. The market will look to earnings reports," Lee added.
In Seoul, large caps closed mixed with tech stocks suffering a sharp decline.
Market kingpin and tech giant Samsung Electronics dipped 2.06 percent to 76,100 won, while the world's No. 2 chipmaker SK hynix tumbled 3.18 percent to 179,600 won.
Top pharmaceutical firm Celltrion gained 1.23 percent to 205,000 won, but automaker Hyundai Motor lost 1.19 percent to 249,000 won, with its smaller affiliate Kia Motors slipping 1.15 percent to 102,800 won.
Leading battery maker LG Energy Solution surged 5.29 percent to 378,000 won, while its local rival Samsung SDS advanced 2.08 percent to 152,000 won.
The local currency was trading at 1,326.80 won against the dollar as of 3:30 p.m., up 1.20 won from the previous session's close, the highest since March 21, when the corresponding figure was 1,322.40. (Yonhap)
