Seoul shares end lower as foreigners offload stocks

SEOUL, July 6 (Yonhap) -- Seoul shares ended lower Monday as foreigners continued to offload local stocks ahead of major companies' second-quarter earnings releases. The Korean won fell against the U.S. dollar.

After opening 1.06 percent higher, the benchmark Korea Composite Stock Price Index (KOSPI) reversed course, falling 37.01 points, or 0.46 percent, to close at 8,051.33. Trade volume was moderate at 442.43 million shares worth 31.59 trillion won (US$20.6 billion), with gainers outnumbering losers 461 to 412.

Investors are assessing whether the artificial intelligence (AI)-driven rally can be sustained and are looking to corporate earnings for signs that massive spending on AI infrastructure is translating into profits, analysts said. Institutions and foreigners sold a combined 2.7 trillion won worth of stocks, while individuals purchased a net 2.6 trillion won.

In Seoul, technology stocks were mixed. Market bellwether Samsung Electronics rose 2.75 percent to 318,000 won, but SK hynix fell 3.38 percent to 2,343,000 won ahead of the chipmaker's planned $29 billion U.S. listing later this week. Top carmaker Hyundai Motor climbed 2.03 percent to 502,000 won, and LIG Defense and Aerospace gained 1.88 percent to 815,000 won.

Among decliners, leading battery firm LG Energy Solution fell 2.21 percent to 354,500 won, and flag carrier Korean Air shed 2.16 percent to 28,750 won.

The Korean won was trading at 1,530.30 won per U.S. dollar as of 3:30 p.m., down 4.7 won from the previous session. On Monday, the Korean won began trading on a 24-hour basis, a move aimed at improving foreign investors' access to local markets and bolstering the case for an upgrade in MSCI's developed-market index. Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose 2.8 basis points to 3.776 percent, and the return on the benchmark five-year government bonds climbed 1.1 basis points.

Coverage comparison

All reports from Yonhap News Agency described the same decline in Seoul shares on Monday, attributing it to continued selling by foreigners and institutions ahead of major companies' second-quarter earnings. The most detailed account, carrying additional details on bond yields, noted that the KOSPI closed at 8,051.33 after falling 0.46 percent, while an intraday update from earlier in the day reported the index at 7,949.74 as of 11:20 a.m., down 1.71 percent. The discrepancy reflects the time of reporting rather than a conflict.

The earlier report also noted that U.S. stocks had ended mixed before the Independence Day holiday, with the Dow Jones Industrial Average rising 1.14 percent and the tech-heavy Nasdaq falling 0.8 percent. That report cited smaller net selling by institutions and foreigners at 1.29 trillion won by mid-morning, whereas the closing reports put the figure at 2.7 trillion won for the full session.

Key claims

  • Market decline: The KOSPI fell 37.01 points, or 0.46 percent, to close at 8,051.33, after opening 1.06 percent higher. (Yonhap)
  • Trading volume: Trade volume was moderate at 442.43 million shares worth 31.59 trillion won (US$20.6 billion). (Yonhap)
  • Selling pressure: Institutions and foreigners sold a combined 2.7 trillion won worth of stocks, while individuals purchased a net 2.6 trillion won. (Yonhap)
  • Currency movement: The Korean won traded at 1,530.30 won per dollar as of 3:30 p.m., down 4.7 won from the previous session. (Yonhap)
  • 24-hour trading: The Korean won began trading on a 24-hour basis Monday, a move aimed at improving foreign investors' access and bolstering the case for an MSCI developed-market upgrade. (Yonhap)
  • Bond yields: Bond prices closed lower, with the three-year Treasury yield rising 2.8 basis points to 3.776 percent and the five-year government bond yield climbing 1.1 basis points. (Yonhap)
  • Wall Street context: U.S. stocks ended mixed before the Independence Day holiday, with the Dow up 1.14 percent and the Nasdaq down 0.8 percent. (Yonhap)