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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 Wednesday. (Yonhap) |
South Korean shares dipped to a month low Wednesday as concerns of an economic slowdown weighed down investor sentiment. The local currency fell against the US dollar.
The benchmark Korea Composite Stock Price Index (Kospi) lost 83.83 points, or 3.15 percent, to close at 2,580,80.
Trade volume was heavy at 448.8 million shares worth 11.2 trillion won ($8.35 billion), with losers outnumbering gainers 859 to 51.
Foreign investors offloaded 986 billion won worth of local shares, becoming net sellers for a second straight session, while institutions extended their selling streak to a third session, dumping 730 billion won. Retail investors scooped up a net 1.65 trillion won.
The index had opened in negative territory, taking a cue from overnight losses on Wall Street prompted by a worse-than-expected US manufacturing purchasing managers index (PMI) that suggested a potential slowdown down the road.
The PMI for August came to 47.2, up 0.4 percentage point from a month earlier, but fell short of the market expectation of 47.5.
"Stock prices fell as investors took a cautious approach ahead of key US economic indicators, while hopes for a big rate cut by the US Fed somewhat shrank, putting additional downward pressure on the South Korean stock market," said Hwang Joon-ho, an analyst at Sangsangin Securities.
The US Federal Reserve is set to hold its next rate-setting meeting Sept. 17-18.
In Seoul, most large caps closed sharply lower.
Market kingpin and tech giant Samsung Electronics tumbled 3.45 percent to 70,000 won, while SK hynix, the world's No. 2 chipmaker, plunged 8.02 percent to 154,800 won.
Other tech shares also took a heavy beating, with top battery maker LG Energy Solution falling 2.80 percent to 399,500 won, while its local rival Samsung SDS gained 1.16 percent to 157,400 won.
Top portal operator Naver tumbled 4.72 percent to 157,500 won, while leading chemicals firm LG Chem retreated 2.70 percent to 324,000 won.
Leading automaker Hyundai Motor fell 2.11 percent to 232,500 won, while its smaller affiliate Kia Motors dipped 1.96 percent to 100,200 won.
The local currency was trading at 1,342.2 won against the greenback, down 0.8 won from the previous session. (Yonhap)
