SEOUL – Seoul’s stock market experienced a notable downturn on Monday, with a 1.14 percent drop in the Korea Composite Stock Price Index (KOSPI), which closed at 2,763.51 points. This decline was largely driven by a slump in semiconductor stocks and a weakening of the local currency against the U.S. dollar.
According to Yonhap News Agency, the market’s downturn reflects growing uncertainties following the end of U.S. President Joe Biden’s reelection campaign, shifting investor sentiment from what was previously dubbed ‘Trump trading’. The market saw a trade volume of 456.1 million shares, amounting to 10.3 trillion won (US$7.42 billion). Notably, institutional and foreign investors offloaded shares worth a combined 105.3 billion won, while retail investors picked up shares worth 137.8 billion won.
Leading tech firms saw significant losses, with Samsung Electronics dropping by 1.66 percent to 83,000 won, and SK hynix falling by 2.15 percent to 205,000 won. The electric vehicle sector also faced challenges, as LG Energy Solution’s stock plummeted by 4.92 percent following the suspension of its joint venture plant construction with General Motors in the U.S. Similarly, Samsung SDI saw a decrease of 4.2 percent in its stock value. The energy sector was not spared, with SK Innovation and LG Chem’s stocks falling by 3.93 percent and 4.05 percent, respectively. Hyundai Motor also experienced a decrease, with shares dipping 1.35 percent to 255,000 won.
Additionally, the South Korean won depreciated to 1,388.2 against the U.S. dollar by the close of trading, marking a 1.5 won decline from the previous session. Bond prices rose slightly, indicating a move towards safer investments amid the market volatility.