SEOUL—Seoul shares closed lower on Thursday, impacted by investor disappointment over Micron Technology's earnings results. The local currency, however, gained ground against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) fell 7.99 points, or 0.29 percent, to close at 2,784.06. Trade volume was moderate to slightly slim at 387.4 million shares worth 10.1 trillion won (US$7.3 billion), with losers far outnumbering winners at 619 to 262. Foreigners and retail investors purchased local shares worth 509.5 billion won and 264.4 billion won, respectively, offsetting institutional sell-offs amounting to 774.3 billion won.
Overnight, Wall Street closed higher, primarily driven by megacap tech shares. However, Micron Technology declined after its earnings results failed to meet investor expectations, with the recent artificial intelligence rally showing signs of wavering. "The KOSPI started off weak due to disappointment over Micron's earnings results but narrowed earlier losses as auto and shipbuilding shares performed robustly," said Lee Jae-won, an analyst at Shinhan Securities.
Market bellwether Samsung Electronics rose 0.37 percent to 81,600 won, while No. 2 chipmaker SK hynix dropped 0.21 percent to 236,500 won. Top automaker Hyundai Motor jumped 2.94 percent to 298,000 won, and its smaller affiliate Kia added 0.54 percent to 131,500 won, becoming the fifth-largest company on the KOSPI. Shipbuilders also saw gains, with HD Hyundai Heavy Industries up 2.62 percent to 156,400 won and HD Korea Shipbuilding & Offshore Industries up 4.65 percent to 157,500 won.
Biotech company SK Bioscience soared 8 percent to 53,300 won after announcing plans to acquire German bio firm IDT Biologika. However, other big-cap shares were weaker. Leading battery maker LG Energy Solution dropped 0.91 percent to 328,000 won, and its smaller rival Samsung SDI retreated 2.17 percent to 361,000 won. Top chemical producer LG Chem sank 2.27 percent to 344,000 won. Internet portal operator Naver lost 1.78 percent to 165,400 won, and Kakao, the operator of the country's top mobile messenger, slid 2.88 percent to 40,400 won.
The local currency ended at 1,385.80 won against the U.S. dollar, up 2.9 won from the previous session's close, as the government sold $1 billion worth of foreign exchange stabilization fund bonds. Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose 0.5 basis points to 3.220 percent, and the return on the benchmark five-year government bonds gained 1.1 basis points to 3.241 percent.