Seoul: South Korean stocks ended their four-day winning streak Friday as foreign investors dumped local stocks for profit hunting following the recent rallies. The local currency fell against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) dropped 7.46 points, or 0.23 percent, to close at 3,175.77.
According to Yonhap News Agency, the index had risen for the fourth consecutive session on Thursday to mark the highest closing level since Sept. 7, 2021. Trade volume was moderate at 458.7 million shares worth 12.44 trillion won (US$9.04 billion), with gainers beating decliners 476 to 407.
Foreign investors offloaded a net 126.4 billion won worth of shares, and institutions sold a net 66.4 billion won, effectively counteracting individual investors' net purchase of 146.7 billion won. The KOSPI had initially made a strong start, surpassing the 3,200-point level during intraday trading for the first time in nearly four years, driven by gains in large-cap semiconductor and battery stocks. However, it turned lower in late morning due to foreign selling.
Several sectors, including defense and shipbuilding, finished in negative territory. Hanwha Aerospace saw a significant drop of 5.51 percent to 806,000 won, while Korea Aerospace Industries (KAI) declined 0.92 percent to 85,900 won. HD Korea Shipbuilding and Offshore Engineering lost 2.43 percent to 321,000 won, and Hanwha Ocean decreased 0.9 percent to 77,500 won.
Samyang Foods, renowned for its globally popular Buldak ramyeon series, fell 1.87 percent to 1,470,000 won. Entertainment giant CJ ENM retreated 1 percent to 69,000 won. In contrast, tech giant Samsung Electronics rose 2.62 percent to 62,600 won, and leading battery maker LG Energy Solution gained 1.1 percent to 321,500 won.
The steel sector saw some positive movement, with POSCO Holdings mounting 2.07 percent to 321,000 won, and Korea Zinc, a leading non-ferrous metal smelter, advancing 0.59 percent to 854,000 won. Meanwhile, the local currency was quoted at 1,375.4 won against the greenback at 3:30 p.m., down 5.4 won from the previous session.
Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys added 1.5 basis points to 2.448 percent, and the return on the benchmark five-year government bonds increased 1.2 basis points to 2.604 percent.