Seoul Shares End Lower as Five Day Winning Streak Snaps

The benchmark Korea Composite Stock Price Index (KOSPI) fell 108.11 points, or 1.55 percent, to close at 6,869.83 on Tuesday. The market opened 2 percent higher but declined as investors locked in profits on large cap stocks. Trade volume reached 399.04 million shares worth 29.64 trillion won, with decliners outnumbering gainers 679 to 195.

Market analysts attributed the decline to fading hopes for a deal to end the war between Iran and the United States, following statements from U.S. President Donald Trump that he was not interested in extending an agreement with Iran. Additionally, elevated oil prices stoked inflation concerns. Overnight, the Dow Jones Industrial Average fell 0.51 percent and the Nasdaq composite declined 0.32 percent.

Large cap stocks showed mixed results. Samsung Electronics fell 2.19 percent to 268,500 won and Hyundai Motor declined 3.97 percent to 435,000 won. Hanwha Aerospace dropped 1.21 percent to 1.15 million won and POSCO Holdings shed 2.84 percent to 324,500 won. Conversely, SK hynix rose 1.03 percent to 1.66 million won and Samyang Foods climbed 5.04 percent to 1.33 million won.

Institutional investors sold a net 784.9 billion won worth of stocks, while retail investors and foreigners bought a net 731.29 billion won and 91.4 billion won, respectively. The Korean won rose 1.2 won from the previous session to close at 1,411.8 won against the U.S. dollar. Bond prices closed lower, with the yield on three year Treasurys rising 5.1 basis points to 3.847 percent and the benchmark five year government bond yield climbing 6.3 basis points to 4.110 percent.