Published : Aug. 20, 2020 - 16:48
(Yonhap)
South Korean stocks tumbled more than 3 percent Thursday amid growing concerns over the fast-spreading new coronavirus infections in the country and uncertainties over the recovery of the US economy. The Korean won fell against the US dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) lost 86.32 points, or 3.66 percent, to close at 2,274.22. Trading volume was high at about 891 million shares worth some 16.9 trillion won ($14.2 billion), with losers outnumbering gainers 823 to 73.
Foreigners sold a net 276 billion won, while retail investors purchased a net 1.1 trillion won. Institutions offloaded a net 821 billion won.
The stock market got off to a weak start and extended losses in the afternoon session amid spiking COVID-19 infections in the greater capital area.
South Korea added 288 new cases of COVID-19 on Thursday. More than 1,500 cases have been newly identified since Friday.
"The unexpected flare-up of the COVID-19 infections will inevitably undermine investors' hopes of a quick economic recovery," Shinhan Investment analyst Lee Ye-shin said.
Investor sentiment also weakened following the US Federal Reserve's statement that the COVID-19 crisis will "weigh heavily" on the world's largest economy.
Lingering trade tensions between the United States and China also added to the risk-averse sentiment among investors.
Most large caps traded lower in Seoul.
Market behemoth Samsung Electronics plunged 4.15 percent to 55,400 won, with No. 2 chipmaker SK hynix sinking 4.27 percent to 71,800 won.
Pharmaceutical giant Samsung Biologics lost 1.85 percent to 794,000 won, while Celltrion advanced 1.64 percent.
Top automaker Hyundai Motor plummeted 5.78 percent to 155,000 won, and leading chemical company LG Chem retreated 2.34 percent to 667,000 won.
Internet giant Naver lost 3.02 percent to 305,500 won, with its rival Kakao dipping 3.19 percent to 364,500 won.
The local currency was trading at 1,186.9 won against the US dollar, down 5.7 won from the previous session's close.
Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose 0.8 basis point to 0.813 percent, and the return on the benchmark five-year government bond added 1.9 basis points to 1.080 percent. (Yonhap)