Seoul shares end lower on tech losses amid rising bond yields
Summary
The KOSPI fell 62.35 points to 6,941.39 in Seoul on Tuesday as technology stocks declined amid concerns over bond yields at multidecade highs. The Korean won strengthened slightly against the U.S. dollar. Investors awaited third-quarter earnings while higher interest rates, energy costs and renewed inflation worries pressured global bond markets.
Key Facts
- Trading volume totaled 257.27 million shares worth 19.1 trillion won ($14.2 billion), with 459 stocks declining and 424 advancing.
- Foreign investors sold a net 1.75 trillion won in shares, while institutions sold 1.98 billion won and individual investors bought 740.56 billion won.
- Samsung Electronics fell 1.45 percent to 272,000 won, while SK hynix declined 3.69 percent to 1.77 million won.
- LG Electronics rose 7.64 percent to 232,500 won after securing a long-term agreement to supply chillers for artificial intelligence data centers with a North American company.
- The won was quoted at 1,343.6 won per U.S. dollar, while three-year Treasury yields fell 0.4 basis point to 3.933 percent and five-year government bond yields fell 1.2 basis points to 4.117 percent.
A screen at the dealing room of Hana Bank’s headquarters in Seoul shows the KOSPI indices, Tuesday. Yonhap
Seoul shares ended lower Tuesday, led by declines in technology stocks, amid concerns over rising bond yields at multidecade highs. The Korean won rose against the U.S. dollar.
After opening higher, the benchmark Korea Composite Stock Price Index (KOSPI) turned lower to close down 62.35 points, or 0.89 percent, at 6,941.39.
Trade volume was light at 257.27 million shares worth 19.1 trillion won ($14.2 billion), with decliners outnumbering gainers 459 to 424.
Foreigners and institutions sold a net 1.75 trillion won and 1.98 billion won worth of stocks, respectively. Individuals bought a net 740.56 billion won.
Investors now await third-quarter corporate earnings, with higher interest rates, elevated energy costs and renewed inflation worries pushing up global bond yields.
Investors are expected to remain cautious until there is a fresh policy catalyst or strong corporate earnings results, analysts said.
In Seoul, tech stocks led the decline.
Market bellwether Samsung Electronics fell 1.45 percent to 272,000 won, and its chipmaking rival SK hynix declined 3.69 percent to 1.77 million won.
Korea Aerospace Industries, the country's sole aircraft manufacturer, dropped 3.22 percent to 129,200 won.
Among gainers, LG Electronics jumped 7.64 percent to 232,500 won as it has secured a long-term agreement to supply chillers for artificial intelligence data centers with a North American company.
No. 2 battery maker Samsung SDI advanced 8.7 percent to 575,000 won and top carmaker Hyundai Motor gained 0.43 percent to 348,000 won.
The Korean won was quoted at 1,343.6 won against the U.S. dollar as of 3:30 p.m., compared to 1,344 won from the previous stock trading session's close.
Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys fell 0.4 basis point to 3,933 and the return on the benchmark five-year government bonds shed 1.2 basis points to 4.117.
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