SEOUL, October 12 (AJP) - Foreign pullout from the Seoul bourse went on Monday upon returning from a three-day break with chip bellwethers becoming the primary target.
The Korea Composite Stock Price Index (KOSPI) shed 2.09 percent, to 6,487.53, set to extend the losing streak for the fourth straight session.
Foreign investors sold a net 356.5 billion won ($266.5 million). SK hynix fell 2.6 percent, more than twice Samsung Electronics’ 1.2 percent loss. SK hynix dropped to 1,637,000 won ($1,223.65). Samsung Electronics slipped to 258,750 won ($193.41).
SK hynix’s largest shareholder SK square fell 4.7 percent to 1,001,000 won ($748.24), a steeper drop than SK hynix itself.
South Korean markets were closed Friday for Hangeul Day, which marks the creation of the Korean alphabet. Monday’s open had to price two U.S. sessions at once, a Thursday technology sell-off that knocked the Nasdaq Composite down 1.3 percent and a Friday rebound that lifted it only 0.6 percent.
U.S. rates offered no relief either. The 10-year Treasury yield ended Friday at 5.24 percent.
Monday’s selling extends Thursday’s, when foreign investors dumped a net 2.0 trillion won ($1.5 billion) and the main index in Seoul fell 2.6 percent.
Institutions bought a net 169.4 billion won ($126.6 million) and individuals 107.9 billion won ($80.7 million). Decliners outnumbered gainers 546 to 314.
LG Energy Solution moved the other way, rising 1.3 percent to 406,000 won ($303.48).
The battery maker’s third-quarter preliminary results, released Thursday, showed an operating profit of 339.1 billion won ($253.5 million) even after excluding 416.9 billion won in U.S. production tax credits.
The KOSDAQ, Korea’s tech-heavy secondary market, fell 1.4 percent, losing 12.77 points to 879.5.
Markets in Tokyo were closed for a public holiday. The Nikkei 225 ended Friday at 69,030.9, virtually unchanged.
The won strengthened, with the dollar quoted at 1,337.8 won, down 6.2 won.
AJP Takeaways
- Foreign investors sold a net 356.5 billion won ($266.5 million) of shares as Seoul reopened after the Hangul Day holiday, pulling the KOSPI down 1.3 percent.
- SK hynix fell 2.6 percent, more than twice Samsung Electronics’ 1.2 percent loss, as Seoul priced in a U.S. technology sell-off it had missed.
- LG Energy Solution rose 1.3 percent against the trend after its third-quarter results showed an operating profit even without U.S. production tax credits.
Tags: SK hynix, Samsung Electronics, SK square, LG Energy Solution, KOSPI, KOSDAQ, Nasdaq Composite, Nikkei 225, U.S. Treasury yield, won-dollar exchange rate, Hangul Day
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