Stocks fall almost 2% for second straight session

Stocks plunged by almost 2 percent Thursday to slump for a second straight session amid recession woes and a dim outlook for the chipmaking sector. The won rose against the dollar.

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,322.64 points on Wednesday, down 45.35 points, or 1.91 percent, from the previous trading day. [YONHAP]

Stocks plunged by almost 2 percent Thursday to slump for a second straight session amid recession woes and a dim outlook for the chipmaking sector. The won rose against the dollar.

The Kospi retreated 45.35 points, or 1.91 percent, to close at 2,332.64 points.

Trading volume was moderate at about 506 million shares worth some 8.7 trillion won ($6.7 billion), with losers outnumbering gainers 699 to 183.

Institutional investors offloaded a net 321 billion won, and foreigners sold 234 billion won, while retail investors bought 521 billion won.

Investors remained cautious after a near 2 percent fall on Wednesday, spooked by soaring inflation and weak economic sentiment data in the United States.

Overnight, the central bank chiefs of major economies warned that the world's high inflation pressure may last longer than expected.

China's purchasing managers' index (PMI) for June expanded for the first time in four months, but at a muted pace.

In Seoul, Samsung Electronics lost 1.72 percent to 57,000 won, with chipmaker SK hynix losing 3.19 percent to 91,000 won.

LG Energy Solution declined 5.24 percent to 371,000 won and internet portal operator Naver moved down 2.64 percent to 240,000 won.

HYBE, the entertainment company behind BTS, declined 2.02 percent to 145,500 won.

Among gainers, Hyundai Motor increased 2.85 percent to 180,500 won, and its smaller affiliate Kia grew 0.52 percent to 77,300 won.

The shipbuilding sector also saw gains, with Korea Shipbuilding & Offshore Engineering, a subsidiary of Hyundai Heavy Industries, gaining 2.96 percent to 93,900 won, and Daewoo Shipbuilding & Marine Engineering increasing 5.49 percent to 24,000 won.

The local currency closed at 1,298.4 won against the dollar, up 0.6 won from the previous session's close.

The Kosdaq lost 16.91 points, or 2.22 percent, to close at 745.44 points.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds gained 0.2 basis points to 3.549 percent, and the yield on the benchmark 10-year government bond lost 8.4 basis points to 3.09 percent.

BY LIM JEONG-WON, YONHAP [lim.jeongwon@joongang.co.kr]