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Seoul shares fall ahead of Powell speechBy Yonhap
Published : June 28, 2023 - 16:13
South Korean stocks closed 0.67 percent lower Wednesday, led by foreign selling, as sound US economic data adding justification for the Federal Reserve's interest rate hikes dampened investor sentiment. The local currency lost ground against the US dollar.
The benchmark Korea Composite Stock Price Index slid 17.20 points to finish at 2,564.19. Trading volume was moderate at 477.4 million shares worth 8.66 trillion won ($6.62 billion), with decliners outpacing gainers 502 to 366.
"The strong US economic data alleviated recession worries, sending Wall Street higher, but they put downward pressure on our stock markets as they raise the likelihood of the Fed to go further in monetary tightening," Choi Yoon-ah, an analyst at Shinhan Investment & Securities Co., said.
US consumer confidence jumped unexpectedly to a near 18-month high in June. Orders of durable manufactured goods increased last month, and new home sales sharply rose to an over-one-year high in May.
Investors have their eye on what US Federal Reserve Chair Jerome Powell will say about the direction of the interest rate hike campaign in a speech at a forum in Portugal on Wednesday.
On the Kospi, foreigners unloaded a net 399.1 billion won worth of local equities. Individual investors scooped up a net 301.6 billion won, and institutions bought a net 56.2 billion won.
Chemical and steel blue-chips drove down the Kospi. Leading chemical producer LG Chem slumped 5.83 percent to 662,000 won, and steel giant Posco Holdings dipped 3.47 percent to 389,500 won.
Top energy company SK Innovation fell 2.95 percent to 160,700 won.
Tech heavyweight Samsung Electronics closed up 0.14 percent to 72,700 won. Chipmaker SK hynix rose 1.15 percent to 114,300 won.
Financials closed in the positive terrain. Major banking firm KB Financial climbed 1.26 percent to 48,150 won, and its rival Hana Financial added 1 percent to 40,250 won.
The local currency ended at 1,307.30 won against the US dollar, down 7.0 won from Tuesday's close. (Yonhap)
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