Seoul:Seoul shares saw further declines late Monday morning, driven by a sell-off in technology stocks due to rising oil prices and heightened tensions in the Middle East, which have sparked inflation worries.
According to Yonhap News Agency, after opening 0.72 percent lower, the Korea Composite Stock Price Index (KOSPI) dropped 150.98 points, or 2.28 percent, to 6,474.95 by 915 a.m. Foreign investors sold a net 699.27 billion won (US$524 million) in stocks, while institutions and individuals purchased a net 3.25 billion won and 441.74 billion won, respectively.
This decline occurred despite Friday's gains on Wall Street, where the Dow Jones Industrial Average increased by 0.83 percent, and the Nasdaq Composite rose by 0.64 percent. The rise in oil prices followed renewed Houthi attacks on Saudi Arabia's main airport over the weekend, raising concerns about further disruptions in energy supplies and potential inflationary pressures. This situation could lead to increased pressure on the Federal Reserve to raise interest rates.
In Seoul, technology stocks were the main contributors to the market's decline. Samsung Electronics fell 2 percent, while SK hynix saw a decrease of 2.86 percent. Hanwha Aerospace dropped 2.58 percent, and HD Hyundai Heavy Industries experienced a significant fall of 3.91 percent.
However, some stocks showed gains, with Kia, the second-largest carmaker, rising 0.94 percent, and shipping firm HMM climbing 5.29 percent. The Korean won strengthened against the U.S. dollar, trading at 1,335.35 won as of 1120 a.m., an increase of 6.65 won from the previous session's close.