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Seoul shares down for 4th day on US rate hike woes

By Yonhap

Published : July 7, 2023 - 16:30

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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 Friday. (Yonhap) An electronic board showing the Korea Composite Stock Price Index at a dealing room of the Hana Bank headquarters in Seoul on Friday. (Yonhap)

South Korean stocks dropped by more than 1 percent on Friday to extend their losing streak to the fourth day amid US rate hike woes. The local currency went down against the US dollar.

The benchmark Korea Composite Stock Price Index retreated 29.58 points, or 1.16 percent, to finish at 2,526.71. Trading volume was high at 602.7 million shares worth 10.2 trillion won ($7.8 billion) with decliners far outpacing gainers 656 to 236.

Foreigners sold a net 41.3 billion won worth of local equities, with institutions unloading a net 761.9 billion won.

Individual investors were net buyers at 762.6 billion won.

Tech stocks were among the biggest decliners for the day, with top-cap Samsung Electronics diving 2.37 percent to 69,900 won.

"The Kospi extended losses as foreign investors dumped stocks after Samsung Electronics announced its earnings guidance," Kim Seok-hwan, an analyst at Mirae Asset Securities, said.

Earlier in the day, Samsung Electronics said its second-quarter profit likely plunged about 96 percent from a year earlier as a chip oversupply and slow demand persisted.

It marked the worst quarterly profit in 14 years since the first quarter of 2009.

Investors remained wary of the US Federal Reserve's potential additional rate hikes following strong employment data. The concerns caused US shares to tumble overnight.

The Fed is widely expected to raise its interest rate in its policy meeting next month. In June, it put a pause on the rate hike campaign after 10 consecutive rate increases aimed at taming runaway inflation.

Most big-cap shares on the Kospi ended in negative terrain.

Top battery maker LG Energy Solution lost 0.53 percent and its smaller rival Samsung SDI slid 0.85 percent. No. 2 chipmaker SK hynix fell 1.76 percent and leading chemical producer LG Chem went down 1.2 percent.

Auto stocks also lost ground. Leading automaker Hyundai Motor dipped 1.21 percent and its affiliate Kia lost 1.24 percent.

Bio stocks also retreated. Samsung Biologics dived 4.01 percent and Celltrion went down 2.62 percent.

LG Electronics fell 1.84 percent despite an estimated 13 percent on-year rise in its second-quarter operating profit on strong performance of consumer products and electric vehicle parts business.

In contrast, steel giant Posco Holdings rose 1.52 percent, and its affiliate Posco Future M shot up 6.69 percent.

The local currency ended at 1,305.00 won against the US dollar, down 4.10 won from Thursday's close. (Yonhap)