South Korean stocks closed sharply lower on Friday, ending a three-session winning streak as investors dumped heavyweight technology names amid external uncertainties, including US trade policy concerns. The Korean won strengthened against the US dollar, while the benchmark KOSPI index fell 123.49 points, or 1.79%, to settle at 6,788.88.
Trading volume was relatively thin, with 287.6 million shares changing hands, amounting to 19.9 trillion won (approximately $14.5 billion). Advancing stocks outnumbered decliners, with 638 gainers against 237 losers. Foreign and institutional investors were net sellers, offloading a combined 2 trillion won, while retail investors bought a net 4243.6 billion won.
Analyst Lee Kyung-min at Daishin Securities noted, "External uncertainties are dampening market sentiment, while many investors are staying on the sidelines ahead of tonight's Jackson Hole global central bank symposium." Federal Reserve Chair Kevin Warsh is set to deliver his first keynote address at the closely watched Jackson Hole meeting, with the speech potentially offering clues about the central bank's next policy direction.
Tech stocks weakened, while cosmetics and refining sectors gained ground. Market heavyweight Samsung Electronics fell 3.38% to 257,000 won, and rival SK Hynix dropped 4.45% to 1,653,000 won. Cosmetics maker APR rose 6.21% to 461,500 won on improved earnings, while refiner S-Oil surged 9.14% to 149,200 won amid renewed tensions in the Middle East. Biotech firm Samsung Biologics announced a 3 trillion won rights offering, sending its shares down 6.65% to 1,486,000 won.
The Korean won traded at 1,372.5 per dollar, appreciating 8.4 won from the previous session. Bond prices fell inversely to yields, with the three-year treasury yield climbing 3.3 basis points to 3.788% and the benchmark five-year yield rising 4.7 basis points to 4.021%.
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