Seoul, Sep 26 (IANS) South Korean stocks tumbled more than 2 per cent on Friday, falling below the 3,400-point threshold for the first time in 10 sessions on escalating tariff woes and diminished hopes for U.S. rate cuts.
The local currency also nosedived, piercing the 1,410 won mark against the U.S. dollar for the first time in more than four months as investors rushed to safer assets, reports Yonhap news agency.
The benchmark Korea Composite Stock Price Index (KOSPI) lost 85.06 points, or 2.45 percent, to close at 3,386.05. It marked the first 3,300-line finish since Sept. 12, when the index closed at 3.395.54.
Trade volume was moderate at 389 million shares worth 12.2 trillion won (US$8.63 billion), with losers sharply outnumbering winners 776 to 121.
Foreign and institutional investors led the sharp decline, dumping a net 661.1 billion won and 489 billion won worth of shares, respectively. Meanwhile, retail investors purchased a net 1.1 trillion won.
Analysts pointed out that the market was weighed heavily down by U.S. President Donald Trump’s overnight comments that South Korea’s planned investment worth $350 billion is just “up front.”
“The remark cast doubt on the initial Korea-U.S. trade agreement in August,” Lee Jae-won, an analyst at Shinhan Securities Co., said. “Investors are also concerned over the trade talks, which have made no progress yet.”
Also, stronger-than-earlier growth in the world’s largest economy reduced hopes for the Federal Reserve’s imminent rate cuts.
Most shares closed in negative territory across the board.
Market bellwether Samsung Electronics sank 3.25 percent to 83,300 won, and chipmaker SK hynix slumped 5.61 percent to 336,500 won.
Top carmaker Hyundai Motor retreated 1.15 percent to 214,500 won, and its auto parts affiliate Hyundai Mobis declined 1.99 percent to 295,000 won.
Drugmakers were mixed following a U.S. government announcement on levying 100 percent tariffs on imported branded drugs. Samsung Biologics lost 2.15 percent to 1 million, while Celltrion edged up 0.06 percent to 178,000 won.
Defence giant Hanwha Aerospace skidded 0.38 percent to 1.04 million won, and leading food company CJ Cheiljedang decreased 1.5 percent to 230,500 won.
Kakao slumped 6.17 percent to 59,300 won on growing public complaints about a recent update on its popular messenger app KakaoTalk.
The local currency was quoted at 1,412.4 won against the greenback at 3:30 p.m., down 11.8 won from the previous session. It marked the highest won-dollar rate quoted at 3:30 p.m. since May 14, when it was 1,420.2 won.
–IANS
na/
