Seoul shares closed a tad lower Thursday, extending their losing streak to a fifth consecutive session on political anxieties surrounding the impeachment trial and investigation against President Yoon Suk Yeol. The South Korean won gained against the US dollar.
The benchmark Korea Composite Stock Price Index shed 0.55 points, or 0.02 percent, to close at 2,398.94.
Trade volume was slim at 344.7 million shares worth 6.8 trillion won ($4.63 billion). Gainers, however, outnumbered losers 451 to 426.
Institutions and foreigners combined sold a net 428.8.5 billion won, and individuals bought a net 355.7 billion won.
The South Korean financial market has been facing downside risks following Yoon's short-lived martial law declaration on Dec. 3, which led to the passage of an impeachment motion against him.
The state anti-corruption agency was expected to proceed with a warrant to detain Yoon for questioning as early as Thursday after a Seoul court granted the warrant in a criminal case over insurrection charges.
"Last year was particularly challenging for the domestic stock market due to internal and external uncertainties, and with uncertainties persisting, it will be difficult to expect a quick recovery in investor sentiment," Kim Ji-won, an analyst at KB Securities, said.
Major blue chips lost ground, with chipmakers and battery shares leading the overall losses. SK hynix dropped 1.55 percent to 171,200 won, and LG Energy Solution fell 0.57 percent to 346,000 won.
Steel and chemical shares also retreated. Top steelmaker POSCO Holdings shed 1.38 percent to 250,000 won, and LG Chem slumped 3 percent to 242,500 won.
In contrast, financial shares advanced, with KB Financial jumping 0.60 percent to 83,400 won and Shinhan Financial rising 0.21 percent to 47,750 won.
Market heavyweight Samsung Electronics also added 0.38 percent to end at 53,400 won.
Defense-related shares also enjoyed brisk trading after the government pledged to assist the industry in securing major overseas deals. Hanwha Aerospace surged 11.33 percent to 363,500 won, and LIG Nex1 soared 15.19 percent to 254,000 won.
The local currency was trading at 1,466.60 won against the greenback at 3:30 p.m., up 5.90 won from the previous session. (Yonhap)
