Seoul: South Korean stocks snapped an 11-session winning streak Wednesday, led by losses in chipmakers, as investors locked in profits from recent sharp gains ahead of the Federal Reserve's rate decision. The Korean won fell against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) lost 36.22 points, or 1.05 percent, to finish at 3,413.40.
According to Yonhap News Agency, trade volume was moderate at 321.95 million shares worth 11.11 trillion won (US$8.04 billion), with losers outnumbering winners 566 to 302. Foreigners and institutions sold a net 35.22 billion and 306.3 billion won worth of shares, respectively, while retail investors bought a net 250.09 billion won worth of shares.
The index opened lower, tracking overnight losses on Wall Street, and fell further as investors took to the sidelines after sharp gains over the previous 11 consecutive sessions. The KOSPI had reached record highs for five straight days through Tuesday. Eyes are now on the Federal Reserve's rate-setting meeting, where the U.S. central bank is widely expected to cut its benchmark interest rate on Wednesday (local time) for the first time this year.
Also affecting the sentiment is that U.S. President Donald Trump hinted at imposing higher tariffs on semiconductors and pharmaceuticals than the 25 percent duty on automobile imports, noting that there is a "bigger margin" that chipmaking and pharmaceutical firms receive. "Trump's remarks weighed on semiconductor stocks, such as Samsung Electronics and SK hynix, while uncertainty over the Fed's meeting added further pressure," Seo Sang-young, an analyst at Mirae Asset Securities, said.
Market bellwether Samsung Electronics lost 1.51 percent to 78,200 won, and SK hynix sank 4.17 percent to 333,500 won. Major bio company Samsung Biologics fell 1.54 percent to 1,020,000 won, and defense giant Hanwha Aerospace dipped 1.06 percent to 1,030,000 won. Power plant manufacturer Doosan Enerbility tumbled 3.16 percent to 61,300 won, and internet portal operator Naver went down 0.64 percent to 233,500 won.
But leading battery maker LG Energy Solution edged up 0.14 percent to 350,000 won, and major chemical firm LG Chem advanced 1.39 percent to 292,000 won. Shipbuilders gathered ground. HD Hyundai Heavy gained 0.6 percent to 506,000 won, and Hanwha Ocean surged 1.99 percent to 113,000 won.
Carmakers traded mixed. Top automaker Hyundai Motor went up 0.47 percent to 216,000 won, while its sister affiliate Kia retreated 0.39 percent to 101,000 won. No. 1 financial firm KB Financial Group grew 0.42 percent to 118,300 won, and leading steelmaker POSCO Holdings increased 0.53 percent to 283,500 won.
The local currency was trading at 1,380.1 won against the greenback at 3:30 p.m., down 1.2 won from the previous session. Bond prices, which move inversely to yields, closed mixed. The yield on three-year Treasurys went up 0.1 basis point to 2.418 percent, while the return on the benchmark five-year government bonds lost 0.1 basis point to 2.564 percent.