Seoul shares snap 3-day rise on profit-taking

Seoul shares closed lower Friday, snapping a rise for three consecutive sessions, as investors cashed in profits after the US market finished bearish despite slowing inflation data. The local currency fell against the US dollar.

The benchmark Korea Composite Stock Price Index fell 34.35 points, or 1.19 percent, to 2,857.

Trade volume was heavy at 399 million shares worth 13.7 trillion won ($9.93 billion), with losers outnumbering gainers 430 to 426.

Foreigners sold a net 549 billion won, while individuals bought a net 473 billion won. Institutions purchased a net 82 billion won.

The US inflation for June fell 0.1 percent from a month earlier, marking the first on-month decline since May 2020 and sparking hope for a rate cut by the Federal Reserve later this year.

But major tech shares on Wall Street finished sharply lower overnight, as investors sought profits.

"We need to address profit-taking moves instead of a transition in the market direction," said Kim Ji-won, an analyst at KB Securities.

In Seoul, tech and auto shares led the overall decline.

Top tech giant Samsung Electronics plunged 3.65 percent to 84,400 won, tracking losses of chipmakers on Wall Street overnight. No. 2 chipmaker SK hynix also surrendered 3.32 percent to 233,000 won.

Battery makers finished bearish as well, with LG Energy Solution losing 0.53 percent to 373,000 won and Samsung SDI falling 2.44 percent to 380,000 won.

Top carmaker Hyundai Motors closed 2.51 percent lower at 271,500 won, and its sister Kia lost 0.82 percent to 121,300 won. Leading auto parts maker Hyundai Mobis fell 0.42 percent to 234,500 won.

Pharmaceutical companies, on the other hand, closed higher, with Samsung Biologic increasing 0.98 percent to 823,000 won and Celltrion gaining 1.61 percent to 188,800 won.

The local currency had been trading at 1,379.3 won against the greenback as of 3:30 p.m., down 0.8 won from the previous session. (Yonhap)