The Korea Herald

지나쌤

Seoul stocks down for 2nd day on weak data, US-China tensions

By Yonhap

Published : July 23, 2020 - 16:11

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(Yonhap) (Yonhap)

South Korean shares closed lower for the second straight day Thursday due to weaker-than-expected growth data and the rising US-China frictions. The Korean won fell against the US dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) lost 12.47 points, or 0.56 percent, to close at 2,216.19. Trading volume was high at about 920 million shares worth some 16.1 trillion won ($13.4 billion), with losers outnumbering gainers 597 to 271.

Foreigners sold a net 210 billion won, and institutions offloaded a net 591 billion won. Retail investors bought a net 779 billion won.

Investor sentiment was dented amid rising political tensions between the United States and China.

The United States toughened punitive measures against China, the latest being the request to close the Chinese consulate in Houston. China vowed to strike back if the order is not reversed.

"The shutdown of the Chinese consulate signaled that the US-China dispute may intensify, eventually further hurting investor sentiment," said Shinhan Financial Investment analyst Choi Yoo-joon.

The KOSPI's fall is also partly attributed to the dismal economic growth data.

South Korea's economy shrank at a sharper-than-expected rate of 2.9 percent in the second quarter of the year from the same period last year due to a slump in private spending and outbound shipments.

The figure marks the slowest quarterly growth since a 3.8 percent on-year retreat in the last three months of 1998, when the country was hit hard by the financial crisis.

In Seoul, most large caps traded lower.

Market bellwether Samsung Electronics lost 1.1 percent to 54,100 won, with No. 2 chipmaker SK hynix shedding 0.96 percent to 82,400 won.

Top pharmaceutical firm Samsung BioLogics dropped 1.9 percent to 775,000 won, and leading steelmaker POSCO retreated 1.01 percent to 195,500 won.

Top game publisher NCSOFT tumbled 5.81 percent to 881,000 won.

Among gainers, the country's largest automaker, Hyundai Motor, spiked 5.06 percent to 124,500 won, with internet giant Naver surging 5.19 percent to 284,000 won.

The local currency closed at 1,197.3 won per dollar, down 2 won from the previous session's close. 

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys lost 1.2 basis points to 0.798 percent, and the return on the benchmark five-year government bond fell 2.3 basis points to 1.048 percent. (Yonhap)