South Korean stocks ended lower on Friday, interrupting a four-day rally, as investors prepared for a five-day market closure for the Lunar New Year holiday. Despite hitting a new intraday high, the KOSPI retreated. The Korean currency weakened against the US dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) declined by 15.26 points, or 0.28 percent, to close at 5,507.01. Earlier in the trading session, the index reached a record high of over 5,580.
Trading volume was substantial, with 1.28 billion shares exchanged, totaling 30.3 trillion won ($21 billion). Declining stocks outnumbered advancing ones by 545 to 336.
Foreign investors were net sellers, offloading 974.1 billion won worth of South Korean shares. This was offset by net purchases from retail investors (708.4 billion won) and institutions (82.4 billion won).
US stock indexes experienced losses overnight, driven by concerns surrounding the potential impact of artificial intelligence on sectors like software.
“Investors engaged in profit-taking after a strong upward trend this week, anticipating the upcoming extended market holiday in Korea,” explained Han Ji-young, a researcher at Kiwoom Securities. She added that the KOSPI’s underlying strength is expected to remain intact.
South Korea’s stock markets will be closed from Saturday through Wednesday in observance of the Lunar New Year holiday.
Despite the KOSPI’s overall decline, tech giant Samsung Electronics saw its shares rise by 1.46 percent, reaching an all-time high of 181,200 won. Preferred shares of Samsung also performed strongly, jumping 4.5 percent to 127,600 won.
Power plant manufacturer Doosan Enerbility increased by 1.26 percent to 96,700 won.
Securities firms showed particularly robust performance, fueled by expectations of enhanced shareholder return policies. Shinyoung Securities surged over 17 percent to 227,500 won, while Mirae Asset Securities climbed 15.36 percent to 61,600 won.
Leading mobile carrier SK Telecom gained 10.9 percent to 86,500 won, and Korea Aerospace Industries rose 6.77 percent to 176,700 won.
However, the majority of large-cap stocks experienced declines.
Major chipmaker SK hynix fell by 0.9 percent to 880,000 won, and auto manufacturer Hyundai Motor decreased by 1.38 percent to 499,000 won.
Leading battery maker LG Energy Solution dropped 3.66 percent to 395,000 won, while defense company Hanwha Aerospace slid 2.3 percent to 1.1 million won.
