Seoul stocks experienced a sharp drop of almost 6% on Friday, ending a three-day winning streak, due to rising tensions in the Middle East. The benchmark Korea Composite Stock Price Index (KOSPI) fell by 5.72% to 6,690.62 points, with trade volume at 395.1 million shares worth 30.9 trillion won.
The country’s bourse operator had to halt program trading for five minutes in response to the significant decline. Foreigners and institutional investors were net sellers, while retail investors bought shares worth 5.18 trillion won.
Analysts attributed the market volatility to escalating tensions in the Middle East and concerns about the semiconductor sector’s outlook. U.S. President Donald Trump’s threats against Iran and a bearish forecast on the chip industry by Morgan Stanley added pressure to the market.
Market heavyweights like Samsung Electronics and SK hynix saw notable declines, while bio and consumer products sectors showed resilience. Samsung Biologics and Celltrion in the bio sector ended positively due to strong earnings.
The Korean won strengthened slightly against the U.S. dollar, quoted at 1,466.6 won. Bond prices, however, decreased, leading to higher yields on government bonds.
