Kospi falls from its peak after choppy trading

Stocks closed Tuesday after choppy trading, as increased valuation pressure offset hopes of a fast economic recovery.

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 3.247.83 points on Tuesday, down 4.29 points, or 0.13 percent, from the previous trading day. [YONHAP]

Stocks closed Tuesday after choppy trading, as increased valuation pressure offset hopes of a fast economic recovery. The won fell against the dollar.

The benchmark Kospi fell 4.29 points, or 0.13 percent, to close at 3,247.83 points.

Trading volume was high at about 1.9 billion shares worth some 19.1 trillion won ($17.1 billion), with losers outnumbering gainers 464 to 376.

Foreigners sold a net 203 billion won, while institutions bought 262 billion won. Retail investors sold a net 45 billion won.

The Kospi got off to a muted start after it finished the previous session at a record high of 3,252.12 points.

Stock prices fluctuated as investors took up a wait-and-see stance, seeking more clues to fathom the outlook for inflation in the United States.

The Kospi rebounded in the late afternoon as bio advanced on the progress of the vaccination campaign. But valuation pressure and lingering inflation worries erased the gains toward the session's close.

"The Kospi fell on investors' move to lock in profit and hold their cash until they have more clues about the price pressure," Daeshin Securities analyst Lee Kyung-min said.

"The upcoming [U.S.] consumer price index [CPI] for May may have a short-term impact on the local stock prices," he said.

The American CPI report is set to be released Thursday.

Large caps closed mixed in Seoul.

Samsung Electronics closed unchanged at 81,900 won, and chipmaker SK hynix shed 0.78 percent to 127,500 won.

Internet portal operator Naver closed flat at 362,500 won, and Kakao gained 1.98 percent to 128,500 won.

Pharmaceutical firm Samsung Biologics increased 1.54 percent to 855,000 won, and Celltrion gained 1.70 percent to 269,000 won.

Automaker Hyundai Motor gained 0.83 percent to 243,500 won, while chemical firm LG Chem retreated 0.74 percent to 808,000 won.

The Kosdaq gained 0.29 points, or 0.03 percent, to close at 986.12.

The local currency closed at 1,114.2 won against the dollar, up 1.3 won from the previous session's close.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds lost 2.7 basis points to 1.174 percent, and the return on the benchmark 10-year government bond added 1.8 basis points to 1.57 percent.

BY LEE TAE-HEE, YONHAP [lee.taehee2@joongang.co.kr]