Seoul shares snap 6-day rise on disappointment over value-up index

Seoul shares ended more than 1 percent lower Wednesday to end their six-day winning streak as investors were disappointed with a new stock index to be launched next week. The local currency rose against the US dollar.

The benchmark Korea Composite Stock Price Index declined 1.34 percent, or 35.36 points, to 2,569.32.

Trading volume was moderate at 441.8 million shares worth 11.4 trillion won (US$8.6 billion), with losers outnumbering winners 516 to 355.

Retail investors and institutions bought a combined 585.7 billion won worth of local shares to offset foreigners' purchase of 573.1 billion won.

Overnight, major US indexes gained ground amid growing hopes for additional rate cuts by the US Federal Reserve.

"But the KOSPI slid as the majority of investors showed disappointment in the details of the value-up index unveiled the previous day," said Lee Kyoung-min, an analyst at Daishin Securities.

Lee said investors dumped shares listed in the corporate value-up index for profit-taking.

An electronic board showing the Korea Composite Stock Price Index at a dealing room of the Hana Bank headquarters in Seoul on Wednesday. (Yonhap)

After the stock markets closed Tuesday, the Korea Exchange unveiled its new index aimed at boosting the corporate value of domestic companies, dubbed the value-up index, set to be launched next week.

Financial shares, which had been in the spotlight thanks to expectations of the value-up program, dragged down the Kospi.

KB Financial dropped 4.76 percent to 78,100 won, Shinhan Financial slid 5.14 percent to 53,500 won, and Samsung Life Insurance plummeted 4.49 percent to 93,600 won.

Bio giants Samsung Biologics and Celltrion decreased 3.23 percent and 2.68 percent to 1.05 million won and 200,000 won, respectively.

Home appliances maker LG Electronics shot down 6.96 percent to 105,600 won.

Major chipmaker SK hynix, however, gained 1.1 percent to 165,300 won, while its rival Samsung Electronics lost 1.58 percent to 62,200 won.

Top chemical producer LG Chem was also among the few gainers, climbing 0.72 percent to 348,500 won.

The local currency was trading at 1,331 won against the greenback as of 3:30 p.m., up 3.9 won from the previous session's close. (Yonhap)