[Featured Stock] Hyundai Motor Falls Over 4% Amid Foreign Net Selling

[Asia Economy Reporter Hwang Yoon-joo] Hyundai Motor is experiencing a decline of over 4% due to foreign selling pressure.

As of 2:35 PM on the 26th, Hyundai Motor is trading at 182,000 KRW, down 4.46% (8,500 KRW) from the previous trading day. Currently, foreigners and investment trusts are net selling 20.3 billion KRW and 56.7 billion KRW respectively.

Hyundai Motor's stock price had recently risen as it was considered a beneficiary of the strong dollar. Automobile and related parts companies generally tend to see their operating profit margins increase by 3.3 percentage points when the exchange rate rises by 10%.

As the KRW-USD exchange rate surged sharply, the burden of foreign exchange losses increased, leading to intraday selling by foreigners. While export companies’ earnings improve during a strong dollar period, extreme exchange rate volatility can reduce investment gains for foreign investors due to foreign exchange losses.

On the morning of the same day, the KRW-USD exchange rate surpassed 1,420 KRW (1,420.4 KRW) for the first time in 13 years and 6 months. In the afternoon, the rise accelerated, reaching up to 1,434.5 KRW.