Seoul shares faced losses on Monday morning, with chipmakers leading the decline despite gains on Wall Street. The benchmark Korea Composite Stock Price Index (KOSPI) fell by 5.25 percent to 7,083.41, following an initial 0.85 percent drop. The renewed tensions in the Middle East, particularly involving the United States and Iran, impacted investor sentiment.
The U.S. military conducted strikes against Iran in response to Iran’s drone attacks on U.S. allies in the Middle East, further escalating tensions. This conflict overshadowed the positive performance of U.S. stocks on Friday, driven by SK hynix’s successful multibillion-dollar U.S. share offering. The Dow Jones Industrial Average and the Nasdaq composite both saw gains of 0.29 percent.
Institutions and foreigners sold a net 501.77 billion won and 906.28 billion won worth of stocks, respectively, while individuals bought a net 1.38 trillion won stocks. Tech stocks in Seoul experienced a significant decline, with Samsung Electronics and SK hynix leading the losses. Meanwhile, Korean Air and Hanwha Aerospace also saw declines, while Hyundai Motor and Hyundai Steel recorded gains.
The Korean won was trading at 1,505.35 won against the U.S. dollar, down 6.85 won from the previous session. South Korea’s bourse operator activated a sell-side sidecar for the KOSPI after a sharp decline due to heavy selling pressure amid the escalating tensions in the Middle East.
