Seoul: South Korean stocks ended lower for the second day Tuesday as investors treaded water ahead of the U.S. presidential election. The local currency sharply lost ground against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) fell 12.09 points, or 0.47 percent, to close at 2,576.88.
According to Yonhap News Agency, trade volume was slim at 306.1 million shares worth 7.6 trillion won (US$5.5 billion), with winners outpacing losers 514 to 356. Individual investors purchased a net 388.9 billion won worth of local stocks, while foreigners and institutions sold 143.6 billion won and 286.1 billion won, respectively. Wall Street’s overnight closure on a lower note due to heightened uncertainty ahead of the U.S. presidential election, where former President Donald Trump and Vice President Kamala Harris are neck and neck in the polls, further impacted the market.
Analysts indicated that the KOSPI’s decline was fueled by caution ahead of major U.S. events this week, including the president
ial election and the two-day Federal Open Market Committee meeting, anticipated to significantly impact the global economy. Tech giant Samsung Electronics slid 1.87 percent to 57,600 won, and chipmaking rival SK hynix dropped 0.41 percent to 193,200 won. Leading battery maker LG Energy Solution lost 1.41 percent to 420,000 won, and its smaller rival Samsung SDI plunged 5.93 percent to 317,500 won.
Bio shares also experienced losses, with Samsung Biologics down 0.88 percent to 1.01 million won and Celltrion down 1.6 percent to 184,400 won. Steel giant POSCO Holdings retreated 1.59 percent to 339,500 won. However, Korea Zinc, the world’s largest smelter embroiled in a management control battle, soared over 15.85 percent to 1.26 million won.
The local currency was trading at 1,378.6 won against the greenback, down 7.7 won from the previous session. Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys declined 1.7 basis points to 2.918 percent, and the return on the benc
hmark five-year government bonds inched down 2.3 basis points to 2.971 percent.