Seoul, South Korea — South Korean stocks saw a significant drop of nearly 2 percent on Thursday, affected by rising concerns over the Israel-Hamas conflict. The Korea Composite Stock Price Index (KOSPI) decreased by 46.8 points, closing at 2,415.8, its lowest since October 10.
As reported by Yonhap News Agency, the trading volume was moderate with 739.5 million shares worth 8.7 trillion won ($6.3 billion) changing hands. Foreigners and institutions sold a net 155.4 billion won and 248.3 billion won worth of local shares, respectively.
Analyst Han Ji-young from Kiwoom Securities stated that geopolitical tensions in the Middle East and rising bond yields in the United States were major factors contributing to the decline. Leading companies such as Samsung Electronics and SK hynix also suffered losses of 1.42 percent and 3.31 percent, respectively.
Stocks in the battery sector, oil refineries, and chemical companies were particularly hit. Top oil refiner SK Innovation saw a decline of 2.17 percent, while leading chemical manufacturer LG Chem retreated by 2.37 percent.
Korean Air Lines and Asiana Airlines saw drops in their stock prices, and Kakao, the operator of the KakaoTalk mobile chat app, slipped 3.11 percent following the arrest of its chief investment officer for alleged stock price manipulation.
The local currency ended the trading day at 1,357.4 won against the U.S. dollar, a drop of 7.8 won from the previous session.