Seoul Stock Market Declines Over 1% Amid US Monetary Policy Doubts

Seoul, Dec 20 (NationPress) The stock market in Seoul dropped by over 1 percent on Friday as investors expressed concerns regarding a less aggressive monetary easing strategy in the United States, along with the implications of President Yoon Suk Yeol's fleeting martial law announcement earlier this month.

The Korean won continued to remain around 1,450 won per U.S. dollar for the second consecutive session, marking its lowest point in 15 years.

The Korea Composite Stock Price Index (KOSPI) plummeted by 31.78 points, or 1.3 percent, concluding the day at 2,404.15. At one stage during the session, it even dipped below the 2,400 mark, according to reports from Yonhap news agency.

Trading volume was moderate, with 606.4 million shares changing hands, totaling 9.12 trillion won (approximately US$6.28 billion). The number of declining shares outpaced advancing ones, with 703 losses compared to 204 gains.

Both foreign and institutional investors sold off local stocks worth 817 billion won and 89.1 billion won, respectively, while retail investors bought a net total of 790 billion won.

Earlier this week, U.S. Federal Reserve Chair Jerome Powell indicated that there may be two additional rate cuts in the coming year, which is two fewer than the Fed's projections made three months prior.

According to Kim Ji-won, an analyst at KB Securities, "The stock market is undergoing increased volatility due to uncertainties surrounding U.S. monetary policy. Sentiment regarding risky assets is likely to remain cautious for the time being."

In Seoul, the leading technology firm Samsung Electronics fell by 0.19 percent to 53,100 won, while the second-largest chip manufacturer SK hynix dropped 3.71 percent to 168,500 won.

Shares in the financial sector also experienced declines, with KB Financial decreasing by 1.27 percent to 85,800 won and Shinhan Financial falling 1.23 percent to 48,250 won.

Leading pharmaceutical company Samsung Biologics saw a decline of 1.98 percent to 939,000 won, while Celltrion edged up by 0.05 percent to 192,500 won.

The U.S. dollar remained strong following the announcement of better-than-expected economic growth of 3.1 percent for the third quarter, an increase from the prior estimate of 2.8 percent.

Bond prices, which move inversely to yields, concluded lower. The yield on three-year Treasuries increased by 2.6 basis points to 2.629 percent, while the return on five-year government bonds rose by 3.9 basis points to finish at 2.775 percent.