Seoul’s stock market ended lower on Tuesday, a victim of declining technology stocks as concerns over rising bond yields,
Seoul’s stock market ended lower on Tuesday, a victim of declining technology stocks as concerns over rising bond yields, now at multidecade highs, pressured the benchmark Korea Composite Stock Price Index (KOSPI). While the Korean won strengthened against the U.S. dollar, the broader market narrative was dominated by an afternoon sell-off that erased early gains.
Market Performance at a Glance
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KOSPI: After a higher opening, the KOSPI reversed course to close at 6,941.39, down 62.35 points or 0.89 percent.
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Trade Volume: Light, with 257.27 million shares traded worth 19.1 trillion won ($14.2 billion).
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Market Breadth: Decliners outnumbered gainers 459 to 424.
Investor Behavior Driven by Higher Yields
The negative turn was fueled by global concerns over inflation and higher interest rates. Investors are cautiously watching third-quarter corporate earnings results, but the current environment—marked by elevated energy costs and a renewed inflation scare—is driving global bond yields upward, causing discomfort for equity markets.
Analysts note that investors are likely to remain on the sidelines until a fresh policy catalyst emerges or strong corporate earnings provide a sustainable reason for a rebound.
The Capital Flows:
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Foreigners: Sold a net 1.75 trillion won.
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Institutions: Sold a net 1.98 billion won.
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Individuals: Bought a net 740.56 billion won.
The Sectors in Play
Technology Under Pressure:
Leading the decline in Seoul were the heavyweight technology stocks.
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Market bellwether Samsung Electronics dropped 1.45 percent, ending at 272,000 won.
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Chipmaking rival SK hynix saw a steeper decline, falling 3.69 percent to 1.77 million won.
Aerospace Hits a Low:
The nation’s sole aircraft manufacturer, Korea Aerospace Industries, was also on the list of major decliners, dropping 3.22 percent to 129,200 won.
Gainers in Focus:
In a notable contrast, several key players managed to buck the downward trend, with specific news driving their gains.
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LG Electronics surged 7.64 percent to 232,500 won, boosted by the announcement of a long-term agreement to supply chillers for artificial intelligence data centers to a North American company.
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No. 2 battery maker Samsung SDI advanced 8.7 percent to 575,000 won.
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Top carmaker Hyundai Motor gained 0.43 percent to 348,000 won.
Currencies:
The Korean won was quoted at 1,343.6 won against the U.S. dollar, compared to 1,344 won at the previous session’s close.
