South Korean stocks closed lower on Monday, ending a two-day winning streak as investors took profits following a recent rally. The benchmark Korea Composite Stock Price Index fell by 0.77 percent to 2,659.84 points. This decline was influenced by a sell-off in low price-to-book ratio (PBR) stocks and semiconductor stocks.
Foreigners and institutions led the decline by selling a net 107 billion won and 112.3 billion won worth of local stocks, respectively. On the other hand, individuals purchased a net 185.1 billion won. The local currency, the won, also saw a significant increase against the U.S. dollar.
Top companies such as Samsung Electronics, SK hynix, Hyundai Motor, and Kia saw declines in their stock prices. However, game makers and entertainment firms performed well, with NCSOFT and Hybe showing significant gains.
Throughout the day, industry experts noted that the decline in the KOSPI was mainly driven by the slump in low PBR stocks and semiconductor stocks. Analysts remain cautious about the market’s short-term outlook due to various factors impacting different sectors.
The South Korean government’s value-up program, aimed at boosting underperforming stocks, and the growing demand for high-performance AI chips have played a role in recent market movements. However, uncertainties remain as investors navigate through various challenges in the global economic landscape.
