Seoul shares turn lower amid renewed Hormuz tensions
Seoul, Aug 7
Seoul shares turned lower late on Friday morning as renewed geopolitical tensions in the Middle East weighed on investor sentiment.
After opening 1.09 percent higher, the benchmark Korea Composite Stock Price Index (KOSPI) traded down 36.07 points, or 0.57 percent, to 6,260.31 as of 11:20 am (local time), reports Yonhap news agency.
The index plunged 4.58 percent in the previous session, dragged down mainly by losses in technology stocks.
Overnight, U.S. stocks declined. The Dow Jones Industrial Average fell 0.85 percent, and the tech-heavy Nasdaq Composite declined 0.06 percent amid a lack of clarity over a possible agreement between the United States and Iran to reopen the Strait of Hormuz.
Iran reportedly plans to deny U.S. and Israeli ships access to the strategic waterway and require compensation from countries it considers hostile before allowing them passage.
Institutions bought a net 423.3 billion won (US$298 million) worth of stocks, while foreigners and individuals sold a net 179.5 billion won and 223.1 billion won, respectively.
In Seoul, large-cap stocks were mixed.
Chip giant SK hynix fell 4.01 percent, top carmaker Hyundai Motor declined 2.38 percent, and Lotte Shopping plunged 15.72 percent.
Shipbuilder Hanwha Ocean dropped 2.98 percent, and Hyundai Steel shed 2.66 percent.
Among gainers, market bellwether Samsung Electronics rose 0.98 percent, and defence giant Hanwha Aerospace climbed 1.8 percent.
Leading steelmaker POSCO Holdings gained 2.51 percent, and Korea Aerospace Industries advanced 4.6 percent.
Among decliners, top carmaker Hyundai Motor fell 1.94 percent, and state-run utility Korea Electric Power Corp. backtracked 1.81 percent.
The Korean won was trading at 1,419.45 won against the U.S. dollar as of 11:20 a.m., up 4.65 won from the close of stock trading the day before, said the report.
— IANS
Reader Comments
Seoul shares falling because of geopolitics is a classic example of how interconnected our world is. One strait in the Middle East and markets from Korea to India start wobbling. Hoping for a peaceful resolution soon.
Interesting that Hyundai Motor and SK hynix are dropping while Samsung Electronics is rising. Even in a downturn, some sectors thrive—especially defence stocks. Reminds me of how India's defence sector also rallies during such global crises.
It's concerning how quickly sentiment shifts. Just yesterday it was tech stocks dragging the market, now it's geopolitical headlines. Market volatility in times like these makes one wonder about the long-term stability of such economies. Looking at India, we've had our own ups and downs with global factors.
Korea Electric Power dropping while defence companies surge... typical pattern. And the won strengthening against the dollar while stocks fall shows mixed signals. The Middle East situation needs to calm down—our energy security and investment portfolios both depend on it. 😔
KOSPI falling 0.57% after a 4.58% plunge yesterday shows real fragility. The US-Iran standoff over Hormuz is a global risk factor. India should speed up its strategic oil reserve and diversify energy sources. Relying on volatile regions is a gamble we can't afford.
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