Seoul:Seoul shares narrowed their losses late Monday morning due to institutional buying, following a technology-led sell-off on Wall Street that spurred speculation of significant investment in artificial intelligence (AI) infrastructure.
According to Yonhap News Agency, the Korea Composite Stock Price Index (KOSPI) opened sharply lower by 3.17 percent but was down only 14.8 points, or 0.26 percent, to 5,653.25 as of 1120 a.m. This came after the Dow Jones Industrial Average fell 0.34 percent and the tech-heavy Nasdaq Composite plunged 2.14 percent on Friday in the U.S.
Institutional investors purchased a net 377.27 billion won (approximately US$284 million) worth of stocks. In contrast, foreign investors and individuals sold a net 84.13 billion won and 555.03 billion won, respectively. Analysts noted that investors remain cautious ahead of upcoming earnings reports from major companies like Tesla and Meta Platforms, as well as the November 3 U.S. midterm elections, amidst ongoing uncertainty over interest rate projections.
Tech stocks led the decline in Seoul, with market leader Samsung Electronics dropping 0.23 percent and SK hynix falling 3.14 percent. SK Telecom, a major wireless services provider, saw a decrease of 0.38 percent, while HD Hyundai Electric declined by 1.94 percent. Conversely, Hyundai Motor, the top carmaker, rose by 3.85 percent, and Korean Air, the national flag carrier, climbed 2.66 percent.
The Korean won was trading at 1,329.80 won against the U.S. dollar as of 1120 a.m., an increase of 6.7 won from the previous session's close.