KB News Desk
South Korean stocks ended by more than 2 pct Wednesday as investors locked in gains following recent artificial intelligence-fueled rallies in semiconductor shares, amid uncertainty over fragile US-Iran peace talks. The Korean won weakened against the US dollar.
The benchmark Korea Composite Stock Price Index lost 173.07 points, or 2.04 percent, to close at 8,303.41.
Overnight, US stocks closed higher on a continued chip rally, while investors closely watched developments regarding peace talks between Washington and Tehran.
Iran on Tuesday said it would not meet with top US envoys who had flown to the region following recent hostilities near the Strait of Hormuz, even as indirect talks continued through mediators in Qatar.
Chip heavyweights weighed on the broader market despite robust export data released earlier in the day.
South Korea’s exports reached a record high in June, surpassing the $100 billion mark for the first time on the back of record semiconductor shipments.
Trade volume was heavy at 396.59 million shares worth 67.84 trillion won ($43.59 billion), with winners outnumbering losers 699 to 191.
Foreigners and institutions sold a net 1.7 trillion won and 70.48 billion won, respectively, while individuals bought a net 1.73 trillion won.
“Foreigners extended their net selling after heavy selling in June, continuing to take profits from the recent rally in semiconductor stocks,” Han Ji-young, an analyst at Kiwoom Securities, said.
Tech heavyweights weighed on the market.
Market bellwether Samsung Electronics fell 5.84 percent to 314,500 won, while chip giant SK hynix declined 3.4 percent to 1.56 million won.
Power equipment shares gained on expectations of increased infrastructure investment for semiconductor clusters and artificial intelligence data centers under the government’s latest investment plan. LS Electric jumped 10.71 percent to 263,500 won, while HD Hyundai Electric rose 4.12 percent to 1.01 million won.
The Korean won was quoted at 1,554.9 won per US dollar as of 3:30 p.m., down 5.5 won from the previous session. (Yonhap)
