(LEAD) Seoul stocks plunge after US-China talks – Community News
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(LEAD) Seoul stocks plunge after US-China talks

(ATTN: ADDS bond yields at the bottom, photo)

SEOUL, Nov. 16 (Yonhap) — South Korean stocks fell Tuesday as investors digest the results of video calls between the presidents of the United States and China. The Korean won fell against the US dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) fell 2.31 points, or 0.08 percent, to close at 2,997.21 points.

Trading volume was mediocre with about 567 million shares worth about 10.5 trillion won ($8.9 billion), with the losers outnumbering 547 to 304.

Foreigners bought net 241 billion won, while institutions sold 110 billion won and private investors sold 143 billion won.

The KOSPI got off to a shaky start as investors tried to cash in on gains from the recent rally.

Shares hovered around the 3,000-point mark during the US-China virtual talks as investors raised expectations that the political event could allay concerns about burgeoning inflationary pressures.

“The US-China talks have largely reiterated the basics, but there were no immediate negative risks,” said Park Gwang-nam, an analyst at Mirae Asset Securities.

Overnight, the tech-heavy Nasdaq composite and the Dow Jones Industrial Average both fell 0.04 percent amid lingering inflation concerns.

In Seoul, Samsung Electronics’ top cap was down 0.14 percent to 71,300 won, while No. 2 chipmaker SK hynix jumped 0.9 percent to 112,000 won.

Pharmaceutical giant Samsung Biologics gained 0.93 percent to 872,000 won, leading chemical company LG Chem improved 1.57 percent to 777,000 won and Samsung SDI gained 0.8 percent to 760,000 won.

Among the losers, automaker Hyundai Motor fell 1.2 percent to 206,500 won, while smaller affiliate Kia fell 2.66 percent to 84,200 won.

The local currency traded at 1,179.9 gains against the US dollar, down 1.5 gains from the close of the previous session.

Bond prices, which are inversely proportional to yields, closed lower. The three-year Treasury yield added 5.1 basis points to 1.963 percent, and the benchmark five-year government bond yield rose 2.1 basis points to 2,140 percent.

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