KB News Desk
Seoul stocks snapped their three-day winning streak to plummet nearly 6 percent on Friday, as escalating tensions in the Middle East sapped risk appetite. The local currency rose against the greenback.
The benchmark Korea Composite Stock Price Index fell 406.27 points, or 5.72 percent, to 6,690.62 after falling as low as 6,650.41.
The sharp decline triggered the country’s bourse operator to suspend program trading for five minutes in early trading.
Trade volume was moderate at 395.1 million shares worth 30.9 trillion won ($21.1 billion). Losers outnumbered winners 582 to 301.
Foreigners and institutional investors were net sellers, offloading a combined net 5.2 trillion won. Retail investors snatched up 5.18 trillion won.
“Risk appetite retreated amid escalating tensions in the Middle East. The brakes have failed and the local stock market is continuing volatile trading,” said Lee Kyoung-min, an analyst from Daishin Securities.
US President Donald Trump threatened to launch a “massive attack” on Iran that could be “bigger than ever before,” as tensions continued to escalate with Tehran.
Further pressure was added to the local stock market amid concerns that the semiconductor super cycle may have passed its peak, following a bearish outlook on the chip sector from Morgan Stanley, the analyst added.
Most market heavyweights closed sharply lower, while bio and consumer products gathered ground.
Top-cap Samsung Electronics tumbled 7.59 percent to 249,500 won, while its industry rival SK hynix dipped 8.34 percent to 1,759,000 won.
Carmaker Hyundai Motor slid 7.18 percent to 401,000 won, financial firm KB financial inched down 2.72 percent to 171,500 won, and shipbuilder HD Hyundai Heavy Industries retreated 2.51 percent to 485,500 won.
In contrast, bio firms ended in positive territory as robust earnings from industry leader Samsung Biologics fueled optimism for the entire sector.
Samsung Biologics rose 10.08 percent to 1,518,000 won, and Celltrion advanced 3.14 percent to 177,600 won.
The Korean won was quoted at 1,466.6 won against the US dollar as of 3:30 p.m., up 0.2 won from the previous session. (Yonhap)
