Seoul shares dip 1.5% amid martial law-triggered political turmoil
An electronic board showing the Korea Composite Stock Price Index at a dealing room of the Hana Bank headquarters in Seoul on Wednesday. (Yonhap)
Seoul shares sank by almost 1.5 percent Wednesday amid political chaos as opposition parties moved to impeach President Yoon Suk Yeol over the declaration of martial law overnight before he reversed the decision hours later. The Korean won fell sharply against the US dollar.
The benchmark Korea Composite Stock Price Index fell 36.1 points, or 1.44 percent, to close at 2,464.00.
Trade volume was heavy at 661.09 million shares worth 13.07 trillion won ($9.26 billion), with losers outpacing winners 733 to 175.
Foreigners sold a net 409 billion won worth of stocks, offsetting institutions and individuals' stock purchases valued at 357.52 billion won.
Late Tuesday, Yoon declared the martial law, accusing the main opposition Democratic Party of being "anti-state forces" paralyzing the operation of the nation with impeachment motions and a downsized budget bill.
But Yoon abandoned the martial law attempt, the country's first such motion in over four decades, early Wednesday after the National Assembly voted to overturn the declaration.
"The shock announcement overnight appears to have a limited impact on the local stock market as the martial law attempt was lifted (by the president) before the market's opening," Kim Byung-yeon, an analyst at NH Investment & Securities Co., said by phone.
The finance ministry said it would deploy "unlimited liquidity" into the financial markets, if necessary, to avoid any volatility. It helped relieve investor sentiment in the stock market, he said.
There seems to be no upside momentum in the stock market for the time being as opposition parties submitted a motion to impeach President Yoon to the National Assembly earlier in the day, brokerages said.
Most large-cap stocks declined.
Market bellwether Samsung Electronics fell 0.93 percent to 53,100 won, leading home appliance maker LG Electronics shed 1.91 percent to 87,300 won, and top carmaker Hyundai Motor was down 2.56 percent to 209,000 won.
Leading battery maker LG Energy Solution declined 2.02 percent to 389,000 won and another battery firm, Samsung SDI, also dropped 0.77 percent to 259,000 won.
Among gainers, No. 2 chipmaker SK hynix rose 1.88 percent to 168,000 won, dominant tobacco company KT&G climbed 0.41 percent to 123,400 won and Korea Zinc, the world's largest refined zinc smelter, was up 8.37 percent.
The local currency was trading at 1,410.1 won against the greenback at 3:30 p.m., down 7.2 won from the previous session. (Yonhap)
