Kospi closes lower to snap 5-day winning streak
The decline came as investors locked in profits on large-cap stocks due to fading hopes for a deal to end the war between the United States and Iran.
A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 6,869.83 points on Aug. 18, down 108.11 points, or 1.55 percent, from the previous trading session.
YONHAP
Shares ended lower on Tuesday, snapping a five-day winning streak, as investors locked in profits on large-cap stocks due to fading hopes for a deal to end the war between the United States and Iran.
The local currency strengthened against the dollar.
After opening 2 percent higher, the benchmark Kospi fell 108.11 points, or 1.55 percent, to close at 6,869.83.
Trade volume was moderate at 399.04 million shares worth 29.64 trillion won ($20.97 billion), with decliners outnumbering gainers 679 to 195.
Institutions sold a net 784.9 billion won worth of stocks, while foreigners and retail investors bought a net 91.4 billion won and 731.29 billion won, respectively.
Overnight, the Dow Jones Industrial Average shed 0.51 percent, and the tech-heavy Nasdaq composite declined 0.32 percent.
Oil prices remained elevated, stoking inflation concerns, and hopes for a U.S. deal with Iran faded after U.S. President Donald Trump said that he was not interested in extending the agreement, which was due to expire.
Investors are now looking to earnings reports from Walmart, Home Depot and Target, due in the coming days, and minutes from the Federal Reserve’s latest meeting, which are expected to be made public later this week, for clues on the U.S. central bank’s future rate path, analysts said.
In Seoul, large-cap stocks were mixed.
Samsung Electronics fell 2.19 percent to 268,500 won, and carmaker Hyundai Motor declined 3.97 percent to 435,000 won.
Defense firm Hanwha Aerospace dropped 1.21 percent to 1.15 million won, and steelmaker Posco Holdings shed 2.84 percent to 324,500 won.
Among gainers, Samsung Electronics’ chipmaking rival SK hynix rose 1.03 percent to 1.66 million won, and Samyang Foods climbed 5.04 percent to 1.33 million won.
The local currency strengthened 6.5 won from the previous session last Friday to trade at 1,411.8 against the greenback at 3:30 p.m.
Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose 5.1 basis points to 3.847 percent, and the return on the benchmark five-year government bonds climbed 6.3 basis points to 4.11 percent.
Yonhap
