Kospi snaps two-session winning streak after Samsung, SK hynix plunge

The Kospi and Kosdaq fell amid tech sector losses and foreign selling, with Samsung and SK Hynix shares dropping significantly.

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,610.36 points on Wednesday, down 0.88 percent, or 23.09 points, from the previous trading session. [YONHAP]

Shares ended lower Wednesday due to concerns over tech earnings. The local currency lost ground against the dollar.

The Kospi lost 23.09 points, or 0.88 percent, to close at 2,610.36, ending the two-session winning streak. The Kosdaq shed 8.02 points, or 1.04 percent, to 765.79.

Trading volume was moderate at 429.5 million shares worth 9.8 trillion won ($7.2 billion), with losers outnumbering gainers 551 to 323.

Foreign investors led the daily drop, dumping a net 664.3 billion won, while individuals scooped up a net 655.5 billion won. Institutions sold a net 35 billion won.

Overnight, U.S. stocks closed sharply lower due to a poorer-than-expected earnings outlook for chip equipment manufacturer ASML.

The Dow Jones Industrial Average fell 0.75 percent, and the tech-heavy Nasdaq composite tumbled 1.01 percent.

In Seoul, semiconductor shares were the biggest losers.

Samsung Electronics, the largest memory chipmaker, retreated 2.46 percent to 59,500 won, and its chipmaking rival, SK hynix, declined 2.18 percent to 188,700 won.

Hanmi Semiconductor, a chip equipment producer, tumbled 2.95 percent to 108,700 won.

Shipbuilder HD Korea Shipbuilding & Offshore Engineering decreased 1.13 percent to 192,900 won, and No. 1 zinc smelter Korea Zinc fell 0.98 percent to 809,000 won.

Financial stocks also closed in negative terrain in the face of profit taking.

Shinhan Financial Group dropped 2.42 percent to 56,400 won, and food and beverage manufacturer Nongshim dipped 1.3 percent to 380,500 won.

But battery maker LG Energy Solution rose 0.25 percent to 404,500 won and Hyundai Mobis, Hyundai Motor's auto parts affiliate, soared 7.81 percent to 241,500 won.

The local currency was trading at 1,362.6 won against the dollar at 3:30 p.m., up 1.3 won from the previous session.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds fell 2.6 basis points to 2.88 percent, and the return on the benchmark U.S. 10-year government bonds dropped 6.8 basis points to 4.03 percent.

BY KIM JU-YEON, YONHAP [kim.juyeon2@joongang.co.kr]