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Seoul stocks dip nearly 3% on US inflation woes

By Yonhap
Published : Feb. 26, 2021 - 16:12

Stock market in South Korea (Yonhap)

South Korean stocks dipped nearly 3 percent Friday on the back of an overnight Wall Street plunge that was spurred by a bond yield hike. The Korean won fell against the US dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) lost 86.74 points, or 2.8 percent, to close at 3,012.95 points.

Trading volume was high at about 1.3 billion shares worth some 21 trillion won ($18.7 billion), with losers outnumbering gainers 729 to 153.

Foreigners dumped a net 2.8 trillion won, institutions offloaded 1 trillion won, and retail investors purchased a net 3.8 trillion won.

Stocks tumbled with the opening bell as investor worries grew globally over post-pandemic inflation, heralded by a bond yield hike.

Overnight, the tech-heavy Nasdaq Composite tumbled 3.52 percent, as yields on the 10-year US Treasury note still remained high. The S&P 500 and the Dow Jones Industrial Average dipped 2.45 percent and 1.75 percent, respectively.

"The bond yield hike came faster than expected, shaking off the asset prices in general," said Eugene Investment & Securities analyst Huh Jae-hwan.

Most large caps closed lower in Seoul.

Top cap Samsung Electronics lost 3.28 percent to 82,500 won, and No. 2 chipmaker SK hynix shed 4.71 percent to 141,500 won.

Giant internet portal operator Naver fell 2.09 percent to 375,000 won, but its rival Kakao added 0.72 percent to 488,000 won.

Pharmaceutical giant Samsung Biologics declined 3.23 percent to 750,000 won, with Celltrion retreating 3.41 percent to 297,500 won.

Leading chemical firm LG Chem plunged 6.63 percent to 831,000 won, and top automaker Hyundai Motor lost 3.27 percent to 237,000 won.

The local currency closed at 1,123.5 won against the US dollar, down 15.7 won from the previous session's close.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose 2.5 basis points to 1.020 percent, and the return on the benchmark five-year government bond added 7.5 basis points to 1.449 percent.

Local stock markets will be closed Monday for the March 1 Independence Movement against Japan, which ruled the Korean Peninsula from 1910-45. (Yonhap)

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