Seoul – The Seoul stock market continued its downward trajectory for the fourth consecutive day on Friday, as investor concerns over a potential U.S. recession intensified. The benchmark Korea Composite Stock Price Index (KOSPI) fell by 31.22 points, a 1.21 percent drop, closing at 2,544.28, while the South Korean won appreciated against the U.S. dollar.
According to Yonhap News Agency, the market's downturn was influenced by a recent report on the U.S. manufacturing purchasing managers index, which fell short of expectations, heightening fears of an imminent economic slowdown in the United States. The KOSPI has been on a steady decline since this report emerged on Tuesday.
Trading volumes were moderate, with 368.9 million shares valued at approximately 8.5 trillion won (US$6.4 billion) changing hands. The market dynamics showed a clear dominance of sellers over buyers, with 760 stocks declining and only 139 advancing.
Foreign investors continued their retreat for the fourth session, selling off a net 265.3 billion won worth of shares. In contrast, retail investors remained net buyers for the fifth consecutive session, picking up a net 170 billion won in stocks. Institutional investors also net purchased 83.7 billion won worth of shares.
Analyst Han Ji-young from Kiwoom Securities noted that the apprehension about the upcoming U.S. jobs data, due to be released later on Friday (U.S. time), also played a significant role in shaping market sentiments. "Concerns over the U.S. jobs data to be released overnight, in addition to existing uncertainties, appear to have affected investor sentiments," Han explained.
The market saw significant movements among major companies. Samsung Electronics marginally declined by 0.14 percent to 68,900 won. In contrast, SK hynix saw a sharper drop of 1.88 percent, closing at 156,400 won. Meanwhile, Celltrion bucked the trend with a surge of 1.70 percent to 191,200 won, but LG Chem and LG Energy Solution faced significant declines, falling by 3.11 percent and 3.66 percent, respectively. The automotive sector also witnessed a downturn, with Hyundai Motor and Kia Motors experiencing declines.
The local currency, the won, strengthened against the dollar, closing at 1,327.6 won, marking an 8.3 won increase from the previous session.