Seoul: South Korean shares ended their two-day rally on Wednesday, dragged down by significant losses in technology and financial sectors. The KOSPI index dropped by 0.88 percent, closing at 2,610.36 points as tech companies faced earnings concerns. The Korean won also weakened against the U.S. dollar.
According to Yonhap News Agency, the decline was influenced by a broader sell-off in global tech stocks, sparked by disappointing earnings forecasts from key industry players like ASML Holdings. The tech-heavy Nasdaq Composite in the U.S. also saw a reduction, falling by 1.01 percent, which contributed to the negative sentiment in Seoul.
Samsung Electronics and SK hynix, leaders in the semiconductor industry, were among the hardest hit, with their stocks falling 2.46 percent and 2.18 percent respectively. Other significant losses were recorded by Hanmi Semiconductor and major firms in other sectors, including HD Korea Shipbuilding and Offshore Engineering, and Korea Zinc.
Despite the general downturn, there
were some positive notes in the market. LG Energy Solution saw a slight increase, and Hyundai Mobis, an affiliate of Hyundai Motor, surged by 7.81 percent, indicating selective investor interest in certain sectors.
Foreign investors were net sellers, offloading 664.3 billion won worth of shares, while individual investors and institutions showed mixed trading behaviors. The trading volume was noted at 429.5 million shares, valued at approximately 9.8 trillion won.
The local currency’s depreciation continued, with the won closing at 1,362.6 against the U.S. dollar, further emphasizing the cautious stance of investors amid economic uncertainties.