Seoul: Seoul stocks shed earlier gains and closed almost flat Thursday as the outcome of a highly anticipated U.S.-China summit was unable to ease trade uncertainties. The local currency rose against the greenback. The benchmark Korea Composite Stock Price Index (KOSPI) gained 5.74 points, or 0.14 percent, to close at 4,086.89.
According to Yonhap News Agency, trade volume was heavy at 562.3 million shares worth 23.9 trillion won (US$16.7 billion). Losers outnumbered gainers 704 to 190. After opening sharply higher, the KOSPI shed earlier gains as institutions and foreign investors turned net sellers. Investors were reportedly disappointed by the U.S.-China summit as the two leaders left the venue without any joint statement or a briefing.
Following the meeting with Xi, Trump said aboard Air Force One that the United States agreed to ease tariffs on Chinese goods from 57 percent to 47 percent. In exchange, Beijing would do more to curb the flow of fentanyl ingredients, resume its purchase of U.S. soybeans, and maintain its exports of rare earths. However, it was not enough to turn market sentiment around, as uncertainties still remain, including issues surrounding semiconductors and Taiwan.
Foreign investors sold a net 117.4 billion won worth of local shares, while institutions dumped a net 837.5 billion won. Retail investors scooped up a net 937 billion won. Large caps closed mixed, with market top-cap Samsung Electronics adding 3.58 percent to 104,100 won, while its rival SK hynix closed up 1.79 percent to 568,000 won.
Carmakers finished in positive territory, with local industry leader Hyundai Motor adding 2.71 percent to 265,000 won, and its sister company Kia moving up 0.35 percent to 116,200 won. Top battery maker LG Energy Solution fell 5.35 percent to 486,500 won, while nuclear power plant builder Doosan Enerbility declined 6.95 percent to 89,700 won. Top portal operator Naver dipped 3.58 percent to 255,500 won.
The Korean won was quoted at 1,426.5 won against the U.S. dollar at 3:30 p.m., up 5.2 won from the previous session's close. Bond prices, which move inversely to yields, closed mixed. The yield on three-year Treasurys remained flat at 2.732 percent, and the return on the benchmark five-year government bonds rose 5.9 basis points to 2.857 percent.