Go to Contents

Recommended #stocks-summary

(LEAD) Seoul shares, Korean won skid to yearly lows on recession fears

16:56 June 20, 2022

(ATTN: RECASTS lead, headline; ADDS bond yields at bottom, photo)

SEOUL, June 20 (Yonhap) -- Seoul shares dipped more than 2 percent Monday to a one-year low, as investors were gripped by fears that a recession in the global economy may come amid faster-than-expected monetary tightening in major economies. The Korean won fell sharply against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) slumped 49.9 points, or 2.04 percent, to close at a fresh 19-month low of 2,391.03 points. The index dipped to an intraday low of 2,372.35 points.

Trading volume was moderate at about 583 million shares worth some 9 trillion won (US$7 billion), with losers outnumbering gainers 585 to 62.

Electronic signboards at a Hana Bank dealing room in Seoul show the benchmark Korea Composite Stock Price Index (KOSPI) closed at 2,391.03 points on June 20, 2022, down 49.9 points, or 2.04 percent, from the previous session's close. (Yonhap)

Foreigners dumped a net 662 billion won, while institutions bought 446 billion won and retail investors purchased 183 billion won.

After a weak start, the KOSPI increasingly lost ground, led by chipmakers and other market heavyweights.

Last week, the U.S. Fed raised its policy rate by 0.75 percentage point, the sharpest increase since 1994.

"The Fed's (hawkish) stance has kept the overall investor sentiment weak," Mirae Asset Securities analyst Park Gwang-nam said.

Top cap Samsung Electronics declined 1.84 percent to a fresh yearly low of 58,700 won, and No. 2 chipmaker SK hynix retreated 1.97 percent to 94,500 won. Battery giant LG Energy Solution dropped 3.29 percent to 411,500 won.

Internet portal giant Naver retreated 1.47 percent to 234,000 won, with bio heavyweight Samsung Biologics decreasing 1.2 percent to 822,000 won.

Among gainers, leading automaker Hyundai Motor added 0.29 percent to 170,500 won.

The local currency closed at 1,292.4 won against the U.S. dollar, down 5.1 won from the previous session's close.

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys lost 7 basis points to 3.675 percent, and the return on the benchmark five-year government bond fell 2.1 basis points to 3.834 percent.



Example Type Sizing




To get the link, tap the URL.

How can we improve?


Thanks for your feedback!