Seoul:Shares in Seoul experienced a significant decline of more than 3 percent on Monday, marking the fourth consecutive session of losses. This drop was primarily driven by a substantial sell-off in technology stocks, exacerbated by concerns over inflation and rising oil prices.
According to Yonhap News Agency, the Korean won appreciated against the U.S. dollar despite the stock market downturn. The Korea Composite Stock Price Index (KOSPI) started the day slightly lower by 0.07 percent and continued to fall, closing down 241.69 points, or 3.65 percent, at 6,384.24.
Trading activity was moderate, with 313 million shares changing hands, valued at 21.33 trillion won (approximately US$16 billion). Declining stocks significantly outnumbered advancing ones, with 717 losers compared to 166 gainers. Institutions and foreign investors were net sellers, offloading 110.65 billion won and 2.02 trillion won worth of stocks, respectively, while individual investors purchased a net 1.47 trillion won.
Oil prices saw an increase as tensions in the Middle East intensified following renewed Houthi attacks on Saudi Arabia's main airport over the weekend. Analysts suggested that a broader regional conflict could further disrupt energy supplies, thereby increasing inflationary pressures and complicating the Federal Reserve's efforts to manage inflation.