SEOUL, October 22 (AJP) - Seoul stocks slipped at the open Thursday despite a tech-led rally on Wall Street, giving back a sliver of Wednesday’s sharp rebound, as investors were sidelined ahead of the Bank of Korea’s rate decision later in the day.
The KOSPI lost 18.6 points, or 0.3 percent, to 5,717.1.
Foreign investors stayed on the buy side with net purchases of 155.4 billion won ($117.0 million), while institutions sold a net 103.9 billion won ($78.3 million) and individuals 55.9 billion won ($42.1 million). The tech-heavy KOSDAQ fell harder, down 0.9 percent to 785.5.
The pullback follows a 3.3 percent jump on Wednesday that lifted the main index in Seoul back above 5,700.
The weakness ran wider than the headline figure suggests, with decliners outnumbering gainers 629 to 220.
The chip pair split. Samsung Electronics held flat at 223,500 won ($168.34) and kept Wednesday’s 5.7 percent gain intact. SK hynix slipped 0.8 percent to 1,284,000 won ($967.09).
Samsung Electro-Mechanics bucked the market, climbing 4.6 percent to 1,222,000 won ($920.39).
LG Energy Solution led large-cap losses, down 4.1 percent at 394,500 won ($297.13). Samsung Biologics fell 3.0 percent to 1,375,000 won ($1,035.63). Hyundai Motor lost 1.8 percent to 304,000 won ($228.97).
The Bank of Korea’s Monetary Policy Board, the central bank’s rate-setting committee, meets Thursday with the base rate at 3 percent after back-to-back quarter-point hikes in July and August.
After the August increase, Governor Shin Hyun-song said board members’ projections pointed to roughly one more hike from the 3 percent level over the following six months.
In New York on Wednesday, the Nasdaq Composite rose 1.1 percent and the Standard & Poor’s 500 (S&P 500) gained 0.6 percent. SpaceX jumped 7.8 percent after reporting its first profit since listing. Tesla rose 3.4 percent after Elon Musk signaled openness to combining the two companies, while Nvidia added 2.5 percent.
In Tokyo, the Nikkei 225 edged up 0.1 percent to 64,704.5.
The won weakened slightly, trading at 1,327.7 per dollar, up 0.2 won.
AJP Takeaways
- Foreign investors bought a net 155.4 billion won ($117.0 million) of KOSPI shares at the open on October 22, but decliners outnumbered gainers 629 to 220.
- Samsung Electronics and SK hynix diverged on October 22, with Samsung Electronics flat at 223,500 won ($168.34) and SK hynix down 0.8 percent at 1,284,000 won ($967.09).
- The Bank of Korea’s interest rate decision on October 22 is the next test for rate-sensitive sectors in Seoul.
Tags: KOSPI, KOSDAQ, Bank of Korea, Monetary Policy Board, Shin Hyun-song, Samsung Electronics, SK hynix, Samsung Electro-Mechanics, LG Energy Solution, Samsung Biologics, Hyundai Motor, Nikkei 225, base rate, won-dollar exchange rate
Copyright ⓒ Aju Press All rights reserved.