South Korean stocks experienced a dip on Friday morning due to profit-taking and concerns about monetary tightening. The benchmark Korea Composite Stock Price Index (KOSPI) declined by 0.81 percent, reaching 2,613.83 at 11:20 a.m.
This decline can be attributed to profit-taking and the lingering worries about continued monetary tightening by major economies. The trend was influenced by the overnight losses on Wall Street, and the European Central Bank’s decision to raise interest rates in an effort to curb inflation. The Federal Reserve had also recently raised interest rates and hinted at further increases depending on data.
The market bellwether, Samsung Electronics, faced a decline of 1.67 percent following significant gains the previous day. On the other hand, leading battery maker LG Energy Solution observed a slight increase of 0.37 percent, while LG Chem experienced a decline of 2.89 percent. Meanwhile, other notable companies such as Samsung SDI and SK Innovation also faced small declines.
Amidst the overall dip, some sectors managed to perform well. POSCO Holdings saw growth of 0.84 percent, and POSCO Future M added 1.34 percent. Carmakers, particularly Hyundai Motor and Kia, witnessed modest increases of 0.1 percent and 1.81 percent, respectively.
However, several companies experienced declines. Major bio firm Samsung Biologics faced a loss of 0.63 percent due to profit-taking, and internet giant Naver decreased by 0.95 percent.
In terms of currency exchange rates, the South Korean won traded at 1,281.85 against the U.S. dollar, declining by 4.15 won from the previous session’s close.
Overall, the dip in South Korean stocks can be attributed to profit-taking activities and concerns regarding monetary tightening. Investors remain cautious following recent interest rate increases by major central banks. The market will continue to monitor the outcome of the Bank of Japan’s policy meeting, which is due to take place on Friday.
