SEOUL - South Korean stocks experienced a significant decline on Friday, largely influenced by the downturn in semiconductor and battery shares, which followed overnight losses in major U.S. companies like Nvidia and Tesla. The local currency also weakened considerably against the U.S. dollar.
According to Yonhap News Agency, The Korea Composite Stock Price Index (KOSPI) closed at 2,505.01, down 30.28 points or 1.19 percent from the previous session. Trading activity was moderate, with 504 million shares traded, valued at approximately 8.6 trillion won (US$6.59 million). The market saw a higher number of declining stocks, with 489 losers compared to 386 gainers.
Institutional and foreign investors led the decline, selling a net total of 586.6 billion won worth of local shares, which offset a net purchase of 561.4 billion won by individual investors. Analyst Choi Yoo-jun from Shinhan Securities pointed out that the drop in Tesla and Nvidia shares in the U.S. market had a negative impact on investor sentiment for South Korean chipmakers and battery manufacturers.
In Seoul, the battery sector faced significant losses, with LG Energy Solution's shares falling 5.72 percent and Samsung SDI's shares declining 5.3 percent. POSCO Future M, a provider of battery materials, also saw its shares decrease by 3.24 percent. LG Chem, a leading chemicals firm, and SK Innovation, the top oil refinery, also reported drops in their stock prices.
Samsung Electronics, the world's largest memory chipmaker, and SK hynix, its chipmaking rival, both experienced stock price declines. In the telecommunications sector, SK Telecom and KT also saw their shares fall.
However, defense companies showed positive performance, with Hanwha Aerospace and Korea Aerospace Industries seeing their shares increase.
The South Korean won ended the day at 1,305.8 won against the U.S. dollar, marking a 15.8 won decrease from the previous session's close.