] South Korean shares closed lower on Aug. 2 as falling oil prices dampened investprs’ appetite. The Korean won fell against the US dollar, snapping a five-day winning streak.
The benchmark Korea Composite Stock Price Index lost 10.58 points, or 0.52 percent, to 2,019.03. Trade volume was moderate at 406.73 million shares worth 4.27 trillion won (US$3.84 billion), with losers outnumbering gainers 468 to 348.
Local equities slipped from this year’s highest as crude oil fell below $40 per barrel for the first time since April on concerns over a supply glut.
Institutions dumped local stocks to lock in gains from the recent rally, while offshore investors extended their buying streak for a 19th straight session to limit the loss.
“The slumping oil prices hurt investor sentiment, weighing down on the emerging market, as well as the local financial market,” said Hong Chun-wook, a strategist at Kiwoom Securities. “The benchmark index lost momentum to further rise from the previous session’s rally without positive factors.”
Foreigners and retail investors each bought a net 52.79 billion won and a net 106.16 billion won, while institutions offloaded a net 180.49 billion won.
Tech shares took a breather from recent gains.
Top market cap
Samsung Electronics declined 1.28 percent to 1,548,000 won, and chip giant
SK hynix dropped 3.16 percent to 33,750 won.
Chemical shares traded bearish.
SK Innovation, the nation’ largest refiner, decreased 2.67 percent to 146,000 won, while
S-Oil, the third-largest in the industry, retreated 1.66 percent to 76,800 won.
LG Chem, the nation’s largest chemical and battery maker, skidded 2.33 percent to 251,000 won.
In contrast, the
Korea Electric Power Corp., the state-run power provider, rose 2.61 percent to 62,800 won.
The local currency closed at 1,110.0 won against the US dollar, down 2.0 won from Aug. 1, when it touched a 13-month high.
Bond prices, which move inversely to yields, closed mixed. The yield on 3-year Treasurys was steady at 1.212 percent and the return on the benchmark 5-year government bond rose 0.7 basis point to 1.230 percent.
(
theinvestor@heraldcorp.com)
