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THE INVESTOR] South Korean shares closed slightly lower on Oct. 5, on tension surrounding interest rate hike in the US and the European Central Bank’s bond buying program. The Korean won fell against the US greenback.
The benchmark KOSPI lost 1.86 points, or 0.09 percent, to close at 2,053. Trade volume was slim at 289.99 million shares worth 4.22 trillion won (US3.78 billion), with losers outnumbering gainers 446 to 347.
Local shares started off on a weak note as investors fretted about the prospect of a Federal Reserve interest rate hike in the coming months, following hawkish comments from Fed officials.
The rising expectation that the European Central Bank was withdrawing its bond buying program also cut investor confidence.
Foreigners and institutions offloaded a net 2.12 billion won and 110.44 billion won, while retail investors bought a net 100.55 billion won.
Korea Electric Power Corp., the state-run power provider, retreated 1.28 percent to 53,800 won, and leading steelmaker POSCO edged down 0.65 percent to 230,000 won.
Cosmetic shares were down, with No. 1 AmorePacific shedding 1.39 percent to 389,000 won and its smaller rival LG Household & Health Care falling 3.7 percent to 937,000 won.
In contrast, tech shares rose ahead of the third-quarter earnings season.
Samsung Electronics edged up 0.31 percent to 1,619,000 won and chip giant SK hynix rose 1.91 percent to 42,600 won to meet this year’s high on the upbeat prospect of its third-quarter earnings.
Samsung SDS, an IT unit of Samsung, jumped 7.62 percent to 162,500 won.
The local currency closed at 1,113.70 won against the US dollar, down 5.90 won from the previous session.
(
theinvestor@heraldcorp.com)
