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Seoul Stocks Trim Gains as Tech Slips, Won Hits 17-Year Low

South Korea's KOSPI index pared its morning gains as foreign investors sold off shares, particularly in major tech companies like Samsung Electronics and SK hynix. The market was influenced by overnight Wall Street losses and geopolitical comments regarding the Iran-Israel conflict. While tech and defense stocks fell, battery, bio, and financial shares saw gains. Meanwhile, the Korean won continued its weakness, having hit a new 17-year low against the U.S. dollar in the previous session.

Key Points: Seoul Shares Trim Gains on Tech Loss, Foreign Sell-Off

  • Foreigners sold $842M in stocks
  • Tech giants Samsung & SK hynix declined
  • Battery and bio shares gained ground
  • Korean won hit a 17-year low Thursday
2 min read

Seoul shares trim earlier gains on tech loss

KOSPI pares gains as foreign investors sell tech shares. The Korean won hits a 17-year low against the dollar. Key movers: Samsung, SK hynix, LG Energy.

"The KOSPI reduced earlier gains as foreigners dumped a net 1.26 trillion won - Yonhap"

Seoul, March 20

South Korean shares trimmed earlier gains on Friday morning as big-cap tech shares turned lower on foreign sell-offs.

The benchmark Korea Composite Stock Price Index (KOSPI) had added 26.43 points, or 0.46 percent, to 5,789.65 as of 11:20 a.m, reports Yonhap news agency.

The KOSPI reduced earlier gains as foreigners dumped a net 1.26 trillion won (US$842 million). Retail investors and institutions purchased local shares worth 746.4 billion won and 524.8 billion won, respectively.

Overnight, the Dow Jones Industrial Average closed 0.44 percent lower, the tech-heavy Nasdaq composite lost 0.28 percent, and the S&P 500 dropped 0.27 percent, but they pared most of their earlier losses after Israeli Prime Minister Benjamin Netanyahu said its war against Iran may end a lot faster than people think and that U.S. President Donald Trump has requested no further attacks on Iranian energy infrastructure.

Earlier this week, Israel attacked the South Pars gas field, Iran's largest, and Iran hit back with a strike on a major liquefied natural gas site in Qatar.

In Seoul, market top-cap Samsung Electronics turned lower, slipping 0.25 percent, and its chipmaking rival SK hynix went down 0.2 percent.

Leading battery maker LG Energy Solution rose 0.94 percent, and power plant manufacturer Doosan Enerbility surged 3.29 percent.

Bio and financial shares gained ground.

Samsung Biologics jumped 2.4 percent, and Celltrion added 0.62 percent.

Shinhan Financial increased 1.14 percent, and Mirae Asset Securities climbed 1.95 percent. Trading firm Samsung C&T soared 2.92 percent.

On the other hand, artificial intelligence (AI) investment firm SK Square shed 1.8 percent, and defence giant Hanwha Aerospace slid 4.73 percent.

Major shipbuilder HD Hyundai Heavy lost 0.71 percent, and Samsung Electro-Mechanics shed 2.71 percent.

The Korean won was trading at 1,496.6 won against the U.S. dollar at 11:20 a.m., up 4.4 won from the previous session.

On Thursday, the won hit a new 17-year low, rising above the psychological and technically critical barrier of 1,500 won.

- IANS

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Reader Comments

P
Priya S
The foreign sell-off in Korean tech is significant. It shows how skittish foreign institutional investors can be. In India, we've seen similar patterns where FIIs pull out at the first sign of global uncertainty, impacting our indices. Retail and institutions buying the dip in Seoul is a bullish sign for local confidence, though.
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Rohit P
Samsung and SK hynix down, but battery and bio shares up! The sector rotation is real. Makes me think about our own market – when IT stocks correct, often pharma or FMCG step up. Diversification across sectors is key, yaar. Don't put all your eggs in one tech basket.
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Sarah B
The part about the Korean won hitting a 17-year low is concerning. A weak currency makes imports more expensive and can fuel inflation. It's a good case study for us in India to appreciate the RBI's role in managing the rupee's stability. Currency volatility adds another layer of risk for investors.
K
Karthik V
While the article is informative, it feels a bit like a dry data dump. It would be more helpful for a common reader to have a line or two explaining *why* foreigners are selling, beyond just the Middle East news. Is it a valuation call, or are there Korea-specific concerns? Just a thought.
M
Meera T
Seeing defence stocks like Hanwha Aerospace slide heavily is interesting, especially after reports of regional tensions. Sometimes the market reaction is counter-intuitive. Goes to show, predicting stock movements based on headlines alone is a fool's game. Deep research is needed. 👍

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