Seoul shares down sharply amid Middle East woes
Seoul, March 30
South Korean stocks traded markedly lower on Monday, led by a decline in large-cap tech shares, as an intensifying conflict surrounding Iran deepened concerns about global oil supplies and market uncertainties.
The benchmark Korea Composite Stock Price Index (KOSPI) fell 216.2 points, or 3.98 per cent, to 5,222.67 as of 11:20 a.m (Seoul time), reports Yonhap news agency.
The index opened nearly 5 percent lower and had been under downward pressure due to heavy foreign selling.
The war in the Middle East, which began in late February following U.S.-Israeli strikes on Iran, has shown signs of further escalation, as the Houthis fired missiles at Israel over the weekend and warned of continued military operations until attacks on Iran stop.
The move pushed up global oil prices as fears of further disruptions to supply intensified.
U.S. President Donald Trump said negotiations with Iran to end the war are under way, but Washington has ordered thousands of troops to the region, stoking fears of ground operations.
Market bellwether Samsung Electronics slid 3.9 percent, while chip giant SK hynix sank 5.75 percent.
Top automaker Hyundai Motor dropped 5.71 percent, while its sister affiliate Kia tumbled 4.24 percent.
Bio giant Samsung Biologics decreased 4.92 percent, and Celltrion went down 2.91 percent.
Defence giant Hanwha Aerospace declined 3.45 percent, and nuclear power plant builder Doosan Enerbility fell 5.2 percent.
Leading shipbuilder HD Hyundai Heavy and its rival Hanwha Ocean lost 4.81 percent and 4.95 percent, respectively.
But leading battery maker LG Energy Solution rose 3.55 percent, and Samsung SDI added 1.6 percent.
The local currency was trading at 1,513.2 won against the greenback at 11:20 a.m., down 4.3 won from the previous session, said the report.
— IANS
Reader Comments
Seeing Samsung and Hyundai take such a big hit is concerning. Many Indian consumers and businesses rely on their products. Rising oil prices will also push up costs here. Hope the situation de-escalates soon for everyone's sake. 🙏
Interesting to see battery makers LG and Samsung SDI went up while everything else fell. Maybe the market is betting on increased demand for energy storage solutions if oil supply gets disrupted? Smart money moving already.
The article mentions "negotiations are under way" but also "thousands of troops" being sent. This mixed messaging from the US creates more uncertainty, which markets hate. Clarity and diplomacy are desperately needed to calm the nerves of investors worldwide.
A nearly 4% drop in the main index is huge! This will have ripple effects. Our Sensex and Nifty might see pressure too, especially in IT and auto sectors which are globally linked. Time to be cautious with investments.
While the focus is on stocks and oil, the real tragedy is the potential for further loss of life and regional destabilization. Economic news often overshadows the human cost. Hope peace prevails.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.