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Seoul shares snap 4-day rise amid rate-cut delay prospects

June 17, 2024 - 16:11 By Yonhap
An electronic board showing the Korea Composite Stock Price Index at a dealing room of the Hana Bank headquarters in Seoul on Monday. (Yonhap)

Seoul shares ended lower Monday to snap a four-session winning streak, amid speculations over a possible delay in long-awaited interest rate cuts by the US Federal Reserve. The Korean won fell against the US dollar.

The benchmark Korea Composite Stock Price Index fell 14.32 points, or 0.52 percent, to close at 2,744.10.

Trade volume was moderate at 545 million shares worth 12.2 trillion won ($8.8 billion), with losers outnumbering gainers 522 to 359.

Individuals bought a net 313 billion won worth of stocks, offsetting institutions and foreigners' stock selling valued at 283 billion won.

On Friday, the Dow Jones Industrial Average fell 0.2 percent to 38,589.16 and the Nasdaq Composite rose 0.1 percent to 17,688.88.

The Fed has recently pared back projections for rate cuts this year, raising worries that central banks in Britain and Europe may follow suit depending on the results of inflation readings this week.

In Seoul, large-cap stocks were mixed.

Market bellwether Samsung Electronics Co. fell 1.9 percent to 78,100 won, leading battery maker LG Energy Solution Ltd. declined 3.6 percent to 336,500 won, leading steelmaker Posco Holdings shed 2.4 percent to 371,000 won, and national flag carrier Korean Air Co. was down 1.8 percent to 21,850 won.

Among gainers, top carmaker Hyundai Motor Co. jumped 3.9 percent to 278,500 won, its smaller affiliate Kia Corp. climbed 5.2 percent to 129,100 won, and state-run Korea Gas Corp. gained 2.9 percent to 53,300 won.

Shares in Hyundai and Kia jumped on news that Hyundai's wholly owned Indian unit Hyundai Motor India has submitted documents for an initial public offering to the Securities and Exchange Board of India. Hyundai seeks to raise up to $3 billion in the IPO.

The local currency closed at 1,381.20 won against the US greenback, down 1.9 won from the previous session's close. (Yonhap)