The Korea Herald


Seoul stocks dip more than 1% on Wall Street plunge

By Yonhap

Published : Sept. 4, 2020 - 17:47

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(Yonhap) (Yonhap)

The South Korean stock market dipped by more than 1 percent to snap a three-day winning streak on Friday as market heavyweights came under heavy selling pressure in line with a plunge on Wall Street. The Korean won fell against the US dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) lost 27.65 points, or 1.15 percent, to close at 2,368.25, after falling by 2.6 percent at one point.

Trading volume was high at about 1.33 billion shares worth some 19.4 trillion won ($16.3 billion), with losers outnumbering gainers 659 to 204.

Foreigners sold a net 467 billion won, while retail investors purchased a net 1.3 trillion won. Institutions offloaded a net 782 billion won.

"Retail investors' strong buying helped cushion heavy selling by foreign and institutional investors," Kiwoom Securities analyst Seo Sang-young said.

The tech-laden Nasdaq 500 plummeted 598.34 points, or 4.96 percent, to 11,458.1 on Thursday (New York time), marking the steepest fall since June. The Dow Jones Industrial Average dipped 2.78 percent, with the S&P 500 tumbling 3.51 percent.

Investor sentiment weakened after the government decided to extend the tougher social distancing scheme in greater Seoul for one week till Sept. 13.

In Seoul, most large caps closed lower.

Market bellwether Samsung Electronics lost 1.42 percent to 55,600 won, but No. 2 chipmaker SK hynix closed flat at 78,700 won.

Internet portal giant Naver retreated 3.1 percent to 328,500 won, with its rival Kakao dipping 1.95 percent to 402,000 won.

Leading chemical maker LG Chem sank 3.26 percent to 743,000 won, and rechargeable battery maker Samsung SDI dropped 2.98 percent to 439,000 won.

Top pharmaceutical firm Samsung Biologics fell 0.77 percent to 773,000 won, and Celltrion shed 1.84 percent to 294,000 won.

Hyundai Motor, the country's largest automaker, lost 2.27 percent to 172,500 won, and top steelmaker POSCO retreated 1.59 percent to 186,000 won.

The local currency closed at 1,189.6 won per dollar, down 1.3 won from the previous session's close.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose 1 basis point to 0.929 percent, and the return on the benchmark five-year government bond added 0.7 basis point to 1.225 percent. (Yonhap)