South Korean shares fall more than 4% on profit-taking
- The benchmark KOSPI was down 393.46 points, or 4.32%, at 8,715.9
SEOUL: Round-up of South Korean financial markets:
Shares fell more than 4% on Tuesday, triggering a trading curb that was later lifted, as investors booked profits after recent sharp gains in chipmaker stocks.
The benchmark KOSPI was down 393.46 points, or 4.32%, at 8,715.91 as of 0250 GMT, after notching a record close on Monday. On Tuesday, the index triggered a trading curb after futures fell 5%.
“It seems to be short-term side-effects from recent concentration in the chip sector. The fall is triggered by growing profit-taking pressure among foreign investors,” said Han Ji-young, an analyst at Kiwoom Securities.
Chipmaker Samsung Electronics fell 4.24%. Peer SK Hynix lost 6.06%, a day after overtaking Samsung to become South Korea’s most valuable listed company.
The market watchdog’s chief offered a rare mea culpa on Monday, saying the regulator had been too hasty in approving leveraged funds tied to some of the country’s best-known chip stocks.
Among other index heavyweights, battery maker LG Energy Solution slid 2.98%, while Hyundai Motor and sister automaker Kia Corp were down 8.78% and down 6.47%, respectively.
Of the total 918 traded issues, 131 shares advanced, while 771 declined. Foreigners were net sellers of shares worth 2.8 trillion won ($1.82 billion).
The won was quoted at 1,536.0 per dollar on the onshore settlement platform, 0.19% higher than its previous close.
Finance Minister Koo Yun-cheol said at a cabinet meeting that the current foreign exchange level at around mid-1,500 won per US dollar is “excessive” compared to the country’s fundamentals.
The most liquid three-year Korean treasury bond yield rose by 0.1 basis point to 3.804%, while the benchmark 10-year yield rose by 1.0 basis point to 4.207%.‑Reuters
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