Seoul shares dip over 1% on tech, battery losses

Seoul shares dipped nearly 1.3 percent Tuesday on big losses by tech and battery shares sparked by a media report on the incoming Trump administration's push for roll back tax credits for the electric vehicle industry. The Korean won lost ground against the US dollar.

The benchmark Korea Composite Stock Price Index fell 32.16 points, or 1.29 percent, to close at 2,456.81.

Trade volume was moderate at 547.9 million shares worth 9.03 trillion won ($6.3 billion), with losers surpassing winners 493 to 384.

Foreigners dragged the Kospi down by dumping 712.5 billion won worth of local shares, while retail investors and institutions purchased 465.5 billion won and 151.9 billion won, respectively.

Overnight, Wall Street closed mixed as investors were paying attention to the Federal Reserve's rate decision Wednesday.

The Fed is widely expected to cut its key rate for the third consecutive time.

Analysts said battery shares fell big in particular on news that US President-elect Donald Trump's transition team will push to cut off support for EVs and impose tariffs on battery materials.

Leading Korean battery maker LG Energy Solution plunged 3.89 percent to 382,500 won, and its smaller rival Samsung SDI shot down 6.08 percent. Posco Future M shot down 8.24 percent to 152,600 won.

Market behemoth Samsung Electronics slid 2.52 percent to 54,200 won, while its chipmaking rival SK hynix jumped 2.62 percent to 184,000 won.

Top automaker Hyundai Motor also declined 2.13 percent to 206,500 won, and major chemical producer LG Chem dipped 4.1 percent.

IT shares were also weak.

Internet portal operator Naver lost 2.1 percent to 209,500 won, and Kakao, the operator of the country's dominant mobile messenger, shed 2.5 percent to 42,850 won.

The local currency was quoted at 1,438.9 won against the US dollar at 3:30 p.m., down 3.9 won from the previous session. (Yonhap)