Seoul stocks slump over escalating Ukraine tensions
Electronic signboards at a Hana Bank dealing room in Seoul show the benchmark Korea Composite Stock Price Index (KOSPI) closed at 2,706.79 points on Feb. 22, down 37.01 points or 1.35 percent from the previous session's close. Yonhap
Korean stocks retreated Tuesday, as Russia sent forces into breakaway regions of Ukraine; while the Korean won also fell against the U.S. dollar.
The benchmark KOSP) lost 37.01 points, or 1.35 percent, to close at 2,706.79 points, even though trading volume was moderate at about 639 million shares worth 10.4 trillion won ($8.7 billion), with losers outnumbering gainers 778 to 101.
Institutions sold a net 382 billion won and foreigners offloaded 326 billion won, while retail investors bought 671 billion won.
Investors dumped stocks following reports that Russian dispatched what it called "peacekeeping forces" to eastern Ukraine.
Investors are closely watching the circumstances in Ukraine, with the incident pushing up oil prices, while sapping demand for risky assets, including stocks and cryptocurrencies.
"At the moment, (the Ukraine risk) may turn out into something larger than mere noise. It also may affect inflation rates," Daeshin Securities analyst Lee Kyung-min said.
Most large caps closed lower in Seoul.
Market bellwether Samsung Electronics decreased 1.08 percent to 73,400 won, and No. 2 chipmaker SK hynix shed 1.15 percent to 128,500 won.
Internet portal operator Naver declined 1.57 percent to 313,000 won, and leading chemical firm LG Chem dipped 4.22 percent to 590,000 won. Top carmaker Hyundai Motor lost 1.89 percent to 181,500 won.
The local currency closed at 1,192.7 won against the U.S. dollar, down 0.6 won from the previous session's close.
Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys lost 3.6 basis points to 2.327 percent, and the return on the benchmark five-year government bond fell 4.2 basis points to 2.524 percent. (Yonhap)