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Seoul shares dip 1.76 % over tech, battery slump

April 25, 2024 - 16:37 By Yonhap
An electronic board showing the Korea Composite Stock Price Index at a dealing room of the Hana Bank headquarters in Seoul on Thursday. (Yonhap)

South Korean stocks plummeted more than 1.7 percent Thursday as investors sought profits following the previous session's sharp rise amid mixed overnight results on Wall Street. The Korean won fell against the US dollar.

The benchmark Korea Composite Stock Price Index slumped 47.13 points, or 1.76 percent, to 2,628.62. Trade volume was slim at 304 million shares worth 8.72 trillion won ($ 6.35 billion), with losers outpacing winners 487 to 360.

Institutions and foreign investors combined sold a net 853.5 billion won, while retail investors purchased a net 872 billion won worth of shares.

On Wednesday, the main index spiked nearly 2 percent, backed by chipmakers and battery makers.

Overnight, Wall Street closed mixed as a disappointing earnings report from Meta Platforms put investors on edge ahead of other big tech earnings reports scheduled to be announced this week. The S&P 500 rose 0.02 percent, and the tech-heavy Nasdaq advanced 0.1 percent, while the Dow Jones Industrial Average fell 0.11 percent.

Kim Seok-hwan, an analyst at Mirae Asset Securities, said the market underwent a correction due to profit taking after a sharp rise the previous session.

Most blue chips lost ground. Market heavyweight Samsung Electronics dropped 2.93 percent to 76,300 won, and chip rival SK hynix plummeted 5.12 percent to 170,600 won despite reporting improved first-quarter earnings.

Battery and steel shares also retreated. Leading battery company LG Energy Solution slid 3.25 percent to 372,500 won after announcing weak first-quarter earnings, and top steelmaker Posco Holdings dropped 0.88 percent to 392,500 won.

Hyundai Motor also fell 0.99 percent to 250,000 won after it reported weakened first-quarter vehicle sales due to a partial shutdown of one of its Korean plants. Kia, however, gained 0.34 percent to 116,600 won.

The local currency closed at 1,375 won against the greenback, down 5.8 won from the previous session's close. (Yonhap)