Shipbuilding stocks led the losses. The sector had seen significant recent gains. The benchmark KOSPI index dropped nearly one percent.
Market Reaction to Summit Outcomes
The KOSPI fell 29.85 points to 3,180.01. This ended a three-session winning streak. Foreign investors were major sellers.
They offloaded a net 476.6 billion won in shares. According to Reuters, shipbuilders were hit the hardest. Hanwha Ocean and HD Korea Shipbuilding dropped over 5%.
HD Hyundai Heavy Industries also fell more than 3%. Analysts pointed to profit-taking as the main cause. The sector had risen on hopes of US cooperation.
Other major stocks also declined. Chipmaker Samsung Electronics fell 1.40%. Peer SK Hynix lost 0.58%.
Automakers Hyundai and Kia both fell over 1%. Battery maker LG Energy Solution was a rare gainer. It climbed 0.39%.
Won Weakens and Bond Yields Mixed
The Korean won weakened against the US dollar. It was quoted at 1,391.4 per dollar. This was a slight decrease from its previous close.
In the debt market, yields were mixed. The most liquid three-year treasury bond yield fell. It decreased by 1.6 basis points to 2.420%.
Conversely, the benchmark 10-year yield rose. It increased by 0.6 basis points to 2.860%. Futures on three-year treasury bonds saw a small gain.
Market sentiment turned cautious. Investors assessed the outcomes of the US-South Korea summit. The focus was on future trade and security agreements.
Of the total traded issues, 269 shares advanced. A larger number, 610 shares, declined. This showed broad market weakness.
The South Korea stock market dip highlights investor caution after the US summit. Profit-taking erased recent gains, particularly in the shipbuilding sector. Markets now look ahead to further economic signals.
Must Know (FAQ Section)
Why did the South Korean stock market fall?
The market fell due to profit-taking. Investors sold shares after recent gains, especially in shipbuilding stocks.
Which sectors were most affected?
The shipbuilding sector saw the biggest declines. Major companies like Hanwha Ocean and HD Korea Shipbuilding dropped over 5%.
How did the Korean won perform?
The Korean won weakened against the US dollar. It was quoted at 1,391.4, a slight decrease from its previous close.
What was the role of foreign investors?
Foreign investors were net sellers. They offloaded a net 476.6 billion won worth of shares during the trading session.
References: Reuters
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