Korean stocks down on last trading day amid slump in U.S. stocks

(Yonhap)

The benchmark Kospi opened lower on Tuesday, the last trading day of the year, hovering around the 4,200 level amid weaknesses in U.S. stocks.

The Kospi was trading at 4,208.54 as of 9:21 a.m. on Tuesday, down 0.28 percent from the previous session. The index opened at 4,193.75, down 0.64 percent, before paring losses.

Retail investors were net buyers of 120.1 billion won ($83.8 million), while foreigners and institutions were net sellers of 105.1 billion won and 14.1 billion won, respectively.

On Monday, local time, the Dow Jones Industrial Average fell 0.51 percent to 48,461.93. The S&P 500 slipped 0.35 percent and the Nasdaq Composite dropped 0.5 percent.

With no clear market moving catalysts and thin year end trading conditions, investors appeared more focused on locking in profits than adding positions ahead of the New Year.

The domestic market also faced pressure from profit taking after the previous session’s sharp rally and spillover weakness from U.S. markets.

Samsung Electronics Co. and SK hynix Inc. bucked the broader decline, supported by gains in Micron Technology Inc. shares overnight.

Samsung Electronics rose 0.75 percent to 120,400 won, while SK hynix gained 0.16 percent to 641,000 won.

Most other large cap stocks were weaker, including LG Energy Solution Ltd., down 2.63 percent, Samsung Biologics Co., down 0.29 percent, Hyundai Motor Co., down 0.68 percent, and HD Hyundai Heavy Industries Co., down 1.53 percent.

“The market was pressured by short-term profit taking after a sharp rally, though the year still stands out as a historic bull run,” said Kiwoom Securities Co. Analyst Han Ji-young.

The Kosdaq index also declined, down 0.37 percent at 929.15. It opened at 928.99, down 0.39 percent, and continued to slide.

In the Kosdaq market, individuals were net buyers of 141.8 billion won, while foreigners and institutions sold a net 130.1 billion won and 13.6 billion won, respectively.

Alteogen Inc. rose 0.11 percent and ABL Bio Inc. gained 1.30 percent, while EcoPro BM Co. fell 2.94 percent, EcoPro Co. dropped 3.82 percent, and Rainbow Robotics declined 2.00 percent.

Separately, shares of L&F Co., a battery cathode materials maker, plunged on Tuesday after news of a sharp reduction in a major supply contract.

As of 9:15 a.m., L&F Co. was down 6.06 percent at 99,200 won, after briefly falling to as low as 92,700 won shortly after the open.

After Monday’s close, L&F disclosed that its supply contract with Tesla Inc. previously valued at 3.8 trillion won had been reduced to 9.73 million won.

In February 2023, the company said it had signed a 3.8 trillion won contract with Tesla to supply high nickel cathode materials from early 2024 through the end of 2025.

L&F said the contract value was revised due to changes in supply volumes, citing shifts in the global electric vehicle market and battery supply environment.

The Kospi closed at 4,214.17 on Tuesday, down 0.15 percent from the previous session, while the Kosdaq ended at 925.47, down 0.76 percent. L&F shares finished at 95,200 won.