April 27, 2024

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[THE INVESTOR] South Korean stocks finished lower on Nov. 13 as investors locked in profits from recent gains and fretted over the delay in corporate tax cuts in the US.

The Korean won fell against the US dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) shed 12.6 points, or 0.5 percent, to close at 2,530.35. Trade volume was relatively small at 263.65 million shares worth 6 trillion won (US$5.35 billion), with losers outnumbering gainers 424 to 375.

Market heavyweights retreated after US Republicans released a tax plan last week that would postpone promised corporate tax cuts in one year, prompting Wall Street to close lower on Nov. 10.

“KOSPI went down as traders took to the sidelines on rising uncertainties over the US tax reform bill,” Jeong Dai, a researcher at Meritz Securities said. “Some investors cashed in gains from recent rallies on lack of momentum following the third-quarter earnings season.”

Foreign investors and institutions sold a net 63.61 billion won and 226.71 billion worth of local stocks, while retail investors scooped up a net 257.83 billion won.

Tech shares traded mixed. Market kingpin Samsung Electronics inched down 0.04 percent to 2,819,000 won, and SK hynix, a major chipmaker, edged up 0.37 percent to 82,300 won.

Chemical shares trade bearish. SK Innovation, the nation‘s top refiner, dropped 3.79 percent to 203,000 won, and No. 3 S-Oil decreased 3.97 percent to 121,000 won.

Auto shares rose on hopes that improved ties with China would boost their sales in the major export destination. Leaders of the two nations agreed to improve relations during their meeting over the weekend on the sidelines of the Asia-Pacific Economic Cooperation (APEC) Economic Leaders’ Meeting in Vietnam.

Hyundai Motor, the No. 1 automaker, advanced 3.88 percent to 160,500 won, and its sister company Kia Motors gained 3.02 percent to 35,800 won.

The local currency closed at 1,120.6 won against the US dollar, down 3.5 won from the previous session‘s close.

By Alex Lee and newswires (alexlee@heraldcorp.com)