Stocks dip more than 2 percent as investors book profits from recent rally

Stocks dipped more than 2 percent Friday as investors booked profits from a recent rally. The won fell against the dollar.

A screen at Hana Bank's dealing room in central Seoul shows the Kospi closing at 3,085.9 points, down 64.03 points, or 2.03 percent from the previous trading day on Friday. [YONHAP]

Stocks dipped more than 2 percent Friday as investors booked profits from a recent rally. The won fell against the dollar.

The benchmark Kospi tumbled 64.03 points, or 2.03 percent, to close at 3,085.9 points.

Trading volume was high at about 1.3 billion shares worth around 22.8 trillion won ($20.7 billion), with losers outnumbering gainers 626 to 240.

Foreigners offloaded a net 764 billion won and institutions sold a net 1.41 trillion won. But retail investors scooped up 2.13 trillion won.

The Kospi opened higher, buoyed by a massive stimulus proposal by U.S. President-elect Joe Biden that fueled hopes of a speedy global recovery from the pandemic.

The stock prices faltered after hopes for the U.S. stimulus proposal were quickly priced into the market, analysts said.

"Foreigners seem to have turned to sellers after picking up the stocks that institutions sold in the previous session, the expiration day for stock options," said Kang Song-cheol, an analyst at Shinhan Investment.

Major blue chips fell.

Samsung Electronics shed 1.9 percent to 88,000 won, and chipmaker SK hynix slumped 2.3 percent to 127,500 won.

Chemical firm LG Chem retreated 3.07 percent to 979,000 won, and rechargeable battery maker Samsung SDI lost 1.6 percent to 737,000 won.

Internet portal operator Naver fell 3.77 percent to 306,000 won, and its rival Kakao declined 3.1 percent to 437,500 won.

Pharmaceutical firm Samsung Biologics moved down 1.47 percent to 804,000 won, and Celltrion sank 6.67 percent to 329,000 won.

The country's largest automaker Hyundai Motor went down 4.19 percent to 240,000 won.

The Kosdaq lost 15.85 points, or 1.62 percent, to close at 964.44.

The local currency closed at 1,099.4 won per dollar, up 1.4 won from the previous session's close.

Bond prices, which move inversely to yields, closed mixed. The return on the three-year bond lost 1.5 basis points to close at 0.974 percent, and the return on the 10-year bond gained four basis points to close at 1.12 percent.

BY CHEA SARAH, YONHAP [chea.sarah@joongang.co.kr]