Go to Contents Go to Navigation

(LEAD) Seoul stocks down for 5th day to hit 14-month low on Fed's hawkish stance, LG Energy crash

All News 16:43 January 27, 2022

(ATTN: ADDS bond yields at bottom, photo)

SEOUL, Jan. 27 (Yonhap) -- South Korean stocks tumbled more than 3 percent to extend their losing streak to a fifth consecutive day Thursday as investor sentiment was dented by the hawkish stance by the Federal Reserve and LG Energy Solution's steep fall on its market debut.

The Korean won fell against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) slumped 94.75 points, or 3.5 percent, to close at 3,029.57 points. The reading marks the lowest closing in 14 months since 2,591.34 points on Nov. 30, 2020.

Trading volume was high at about 478 million shares worth some 20.3 trillion won (US$16.9 billion), with losers outnumbering gainers 856 to 61.

Foreigners dumped a net 1.6 trillion won and retail investors offloaded 175 billion won, while institutions bought 1.8 trillion won.

Electronic signboards at a Hana Bank dealing room in Seoul show the benchmark Korea Composite Stock Price Index (KOSPI) closed at 2,614.49 points on Jan. 27, 2022, down 94.75 points or 3.5 percent from the previous session's close. (Yonhap)

Stocks came off to a weak start as investors digest the U.S. central bank chief's signaled rate hikes in March. The escalating Russia-Ukraine political tensions also sapped the investor appetite for risky assets.

Overnight, the tech-heavy Nasdaq composite inched up 0.02 percent and the Dow Jones Industrial Average retreated 0.38 percent.

"Investors had expected the (U.S. monetary) uncertainties would ease off after the FOMC meeting. But the Fed's continued hawkish comments seem to have further sapped the investors' appetite for risky assets," Cape Investment & Securities researcher Na Jeong-hwan said.

LG Energy Solution, a newcomer on the market, closed at 505,000 won, down 15.41 percent from its opening price of 597,000 won but still higher than the IPO price of 300,000 won.

After the market debut, LG Energy Solution emerged as the country's second most-valued firm.

Tech and other market heavyweights closed in negative terrain.

Market top cap Samsung Electronics lost 2.73 percent to 71,300 won, and No. 2 chipmaker SK hynix retreated 3.4 percent to 113,500 won.

Internet portal operator Naver declined 3.19 percent to 303,000 won, and leading carmaker Hyundai Motor decreased 1.84 percent to 186,500 won.

Pharmaceutical giant Samsung Biologics shed 5.94 percent to 712,000 won, and LG Chem plunged 8.13 percent to 610,000 won.

The local currency closed at 1,202.8 won against the U.S. dollar, down 5.1 won from the previous session's close.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose 6.1 basis points to 2.217 percent, and the return on the benchmark five-year government bond added 6.5 basis points to 2.432 percent.


Send Feedback
How can we improve?
Thanks for your feedback!