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After record high, Kospi slumps slightly

July 01,2017
Seoul’s main bourse declined Friday, driven by sell-offs by foreign and institutional investors with risk aversion on the rise. The Korean won fell against the U.S. dollar.

The benchmark Kospi closed at 2,391.79, down 0.16 percent, or 3.87 points, from the previous trading day. The local stock market opened lower, tracking declines on Wall Street overnight.

However, the main stock index, which posted all-time highs this week, has risen for a seventh consecutive month.

“The market is likely to see a short-term correction after a seven-month gain,” said Kim Dae-jun, a senior researcher at Hankook Investment & Securities.

Retail investors bought 109.2 billion won ($95.4 million) in shares.

Institutional investors, on the other hand, offloaded 120.5 billion won worth and foreign investors sold 40.9 billion won in shares.

Top cap Samsung Electronics fell 0.83 percent to end at 2,377,000 won, and SK Hynix, a global chipmaker, declined 1.61 percent to 67,400 won.

Naver, the operator of the country’s top Internet portal, shed 1.76 percent to 838,000 won.

Top automaker Hyundai Motor fell 0.93 percent to 159,500 won, and its smaller affiliate Kia Motors rose 0.13 percent to close at 38,200 won.

LG Chem gained 3.19 percent to 291,000 won and the tobacco company KT&G also rose 1.74 percent to 117,000 won. Samsung SDS fell 2.38 percent to 184,500 won and LG Display lost 1.20 percent to 37,100 won.

The steelmaker Posco rose 1.23 percent to 287,000 won and Lotte Shopping gained 1.17 percent to 303,500 won.

The secondary Kosaq closed at 669.04, up 0.16 percent, or 1.04 points, from the previous trading day, continuing its winning streak for the second consecutive day.

The local currency closed at 1,144.10 won against the U.S. dollar, down 3.0 won from the previous session’s close.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year Treasuries fell 0.2 basis point to 1.698 percent, while the return on the benchmark five-year government bond added 0.1 basis point to 1.908 percent.

BY KIM YOUNG-NAM, YONHAP [kim.youngnam@joongang.co.kr]