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Seoul Stocks Plunge 8% After Trading Halt Amid Global Market Turmoil

South Korean stocks experienced a severe sell-off, with the benchmark KOSPI index dropping nearly 8% and triggering a market-wide circuit breaker that suspended trading for 20 minutes. The extreme volatility was driven by soaring global oil prices, which surpassed $100 per barrel, and weaker-than-expected U.S. employment data. Major companies like Samsung Electronics and SK hynix saw their shares plummet by roughly 10%, while financial stocks also lost significant ground. This marks the second circuit breaker activation in a week, following a historic 12% crash just days earlier.

Key Points: Seoul Shares Crash 8%, Triggering Circuit Breaker

  • KOSPI fell 7.98%
  • Circuit breaker triggered after 8% plunge
  • Oil price surge past $100 per barrel
  • Weak US jobs data spooks investors
  • Major tech and financial stocks sink
2 min read

Seoul shares down 8 pc following trading suspension amid market slide

South Korea's KOSPI index plummeted nearly 8%, forcing a 20-minute trading suspension amid volatility from oil prices and weak US data.

"The KRX activated a circuit breaker... suspending trading for 20 minutes. - Yonhap news agency"

Seoul, March 9

South Korean stocks plummeted around 8 per cent on late Monday morning after the Korea Exchange resumed transactions following a 20-minute trading suspension amid extreme volatility triggered by recent US-Israeli strikes on Iran.

The benchmark Korea Composite Stock Price Index (KOSPI) moved down 445.88 points, or 7.98 percent, to 5,138.99 as of 11:20 a.m, reports Yonhap news agency.

The KRX activated a circuit breaker at 10:31 a.m. after the KOSPI plunged 452.8 points, or 8.11 percent, to 5,132.07, suspending trading for 20 minutes.

A circuit breaker is triggered when the index stays 8 per cent below the previous session's level for one minute.

The KRX issued a circuit breaker Wednesday last week as well, when the main index crashed 12.06 percent, marking the steepest one-day decline since Sept. 12, 2001, in the aftermath of the Sept. 11 terrorist attacks in the United States.

Earlier in the day, the main bourse operator activated a sell-side sidecar, suspending sales for five minutes, which is triggered when the KOSPI 200 Futures index moves 5 percent or more for at least one minute.

Investors kept watchful eyes on the global energy price volatility, with the U.S. benchmark West Texas Intermediate (WTI) crude surpassing US$100 per barrel Sunday (U.S. time).

The market also reacted to weaker-than-expected U.S. jobs data released last week, as nonfarm payrolls fell by 92,000 in February, missing market expectations for a gain of 59,000.

In Seoul, oil refiners traded mixed, with SK Innovation falling 2.8 percent, while S-Oil moved up 3.16 percent.

Top market cap Samsung Electronics sank 9.94 percent, and SK hynix moved down 10.98 percent.

Financial shares lost ground as well, with KB Financial dipping 5.7 percent and Shinhan Financial decreasing 4.68 percent.

Hanwha Aerospace dipped 4.86 percent, and Hanwha Ocean surrendered 3.95 percent.

POSCO International, a trading firm, moved up 11.06 percent as investors were optimistic over the firm's energy business portfolio.

The Korean won was trading at 1,497.3 won against the U.S. dollar, down 20.9 won from the previous session.

- IANS

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Reader Comments

P
Priya S
Seeing Samsung and SK hynix drop nearly 10% is shocking! So many of our electronics come from there. Hope this volatility settles soon, otherwise consumer prices for phones and gadgets might spike here too. 📉
A
Aman W
The circuit breaker system is a good safety net. RBI and SEBI should also ensure our markets have robust mechanisms to handle such extreme global events. Geopolitical risks are the new normal for investors.
S
Sarah B
Working in finance in Mumbai, this is all we're talking about. Oil over $100 is the real worry for India. Our import bill will balloon, putting pressure on the rupee. Tough days ahead for the economy.
V
Vikram M
While the focus is on stocks, the real story is the won crashing to nearly 1500 per dollar. A weak Korean currency makes their exports cheaper, which could hurt our manufacturing sector's competitiveness. Complex chain reaction.
K
Karthik V
Respectfully, the article could have done a better job explaining what this means for retail investors in India. We have major trade and investment links with South Korea. More context on the CPSE index or mutual funds with Korean exposure would be helpful.
M
Meera T
It's scary to see markets fall like this. Makes you

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