Seoul: Shares post fourth straight weekly loss on recession woes

SOUTH Korean shares closed more than 1 per cent lower on Friday, dragged by semiconductor and battery sectors, with the benchmark index extending its weekly losing streak to a fourth in a row on recession worries despite stronger-than-expected exports data.

The benchmark Kospi ended down 27.22 points, or 1.17 per cent, at 2,305.42. For the week, the index fell 2.59 per cent.

Worries of economic recession intensified, said Lee Kyoung-min, analyst at Daishin Securities, while citing South Korea’s increased trade deficit and uncertainties around semiconductor as well as battery businesses as additional factors that weighed on the market.

South Korea’s June exports grew faster than expectations, but still at their slowest pace in 19 months as soaring inflation constrained global demand, with trade deficit widening to US$2.47 billion, the biggest since January this year.

Meanwhile, a private-sector survey showed the country’s factory activity growth slowed for a second month in June, as output dipped amid supply chain disruptions.

Among heavyweights, technology giant Samsung Electronics fell 1.40 per cent and peer SK Hynix dropped 3.85 per cent.

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Battery maker LG Energy Solution fell 3.91 per cent, while its peers Samsung SDI and SK Innovation lost 3.76 per cent and 7.55 per cent, respectively.

Foreigners were net sellers of US$265.41 million worth of shares on the main board. REUTERS