South Korean Shares Post Steepest Quarterly Fall Since 2020
The benchmark KOSPI fell 0.48% to close at 6,838 on Wednesday, while posting its biggest quarterly drop since Q1 2020, plunging 19% in Q3 after six consecutive quarters of gains. The decline was driven mainly by the July selloff in major chip stocks amid elevated AI-related valuations. Global bond yields climbed to multi-year highs as inflation concerns and expectations for higher interest rates weighed on equities, while elevated oil prices amid ongoing Middle East tensions added to concerns over persistent inflation and delayed monetary easing. Foreign investors remained net sellers of Korean equities during the quarter. Additionally, Samsung Electronics and SK hynix have completed around 80% of their combined KRW55 trillion buyback plans, raising the prospect of an earlier end to the purchases and lower KOSPI demand. Losses were seen in Samsung Electronics (-0.92%), Hyundai Motor (-1.29%), KB Financial Group (-2.42%), Shinhan Financial Group (-3.62%), and Kia Corp (-2.67%).
48% to close at 6,838 on Wednesday, while posting its biggest quarterly drop since Q1 2020, plunging 19% in Q3 after six consecutive quarters of gains. The decline was driven mainly by the July selloff in major chip stocks amid elevated AI-related valuations. Global bond yields climbed to multi-year highs as inflation concerns and expectations for higher interest rates weighed on equities, while elevated oil prices amid ongoing Middle East tensions added to concerns over persistent inflation and delayed monetary easing. Foreign investors remained net sellers of Korean equities during the quarter.
Additionally, Samsung Electronics and SK hynix have completed around 80% of their combined KRW55 trillion buyback plans, raising the prospect of an earlier end to the purchases and lower KOSPI demand. 67%).