FX.co ★ South Korean Shares End Lower

On Thursday, the KOSPI index declined by 0.59%, closing at 4,111, as early session gains were eroded by investor caution following the U.S. Federal Reserve's policy decision. Despite initial optimism stemming from the Fed's 25 basis point rate cut, diverging opinions emerged as the central bank projected only one more cut for the upcoming year. Further weighing on the index, tech sectors suffered after the Korea Exchange imposed margin purchase restrictions on SK Hynix, causing a 2.90% drop in its shares. The market also witnessed declines in stocks like Hyundai Motor, falling 1.98%, HD Hyundai Heavy Industries dropping 2.98%, Hanwha Aerospace slipping 1.41%, and SK Square decreasing by 4.17%. In contrast, LG Energy Solution and Samsung Biologics posted gains of 0.11% and 0.60%, respectively. There was notable trading activity, with institutional investors engaging in profit-taking leading to a net sale of KRW 771 billion. This was somewhat balanced by purchases from foreign investors and individuals, who bought KRW 346 billion and KRW 403 billion in stocks, respectively. The session was also influenced by a marginally weaker won, which exerted additional pressure.