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Seoul Stocks Soar 10% in Rebound After Historic 12% Plunge

South Korean stocks staged a dramatic recovery, with the KOSPI index surging over 10% in morning trading. This sharp rebound comes just one day after the index suffered its steepest single-day percentage decline in history, plunging 12.06%. Investor sentiment, previously hammered by fears that the Iran crisis would hurt the export-driven economy, was buoyed by widespread bargain hunting. Major companies like Samsung Electronics and SK hynix led the gains, soaring by roughly 12% each.

Key Points: Seoul Shares Rebound 10% After Record Sell-Off

  • KOSPI rebounds over 10%
  • Follows historic 12% plunge
  • Iran crisis fears rattled markets
  • Samsung Electronics soars nearly 12%
  • Korean won strengthens against dollar
2 min read

Seoul shares up over 10 pc after record sell-off in previous session

South Korea's KOSPI surges over 10% in a sharp rebound following its steepest single-day decline in history, triggered by Middle East conflict fears.

"The 12.06 per cent fall marked the steepest one-day decline since Sept. 12, 2001 - Yonhap news agency"

Seoul, March 5

South Korean stocks traded sharply higher late on Thursday morning on bargain hunting following the steepest decline in history the previous session.

After opening 3.09 per cent higher, the benchmark Korea Composite Stock Price Index (KOSPI) had extended its gains, shooting up 10.25 per cent, or 521.9 points, to 5,615.44 as of 11:20 am, reports Yonhap news agency.

The Korea Exchange (KRX), the country's main bourse operator, activated a five-minute buy-side sidecar at 9:06 a.m., halting program-driven buy orders in KOSPI futures for five minutes.

On Wednesday, the KOSPI plunged 12.06 per cent to close at 5,094.54, marking the sharpest daily decline in history, as investor sentiment was dampened by fears that the Iran crisis could heavily weigh on the export-driven South Korean economy.

Most shares traded in positive territory across the board.

Market bellwether Samsung Electronics soared 11.96 percent, and its chipmaking rival SK hynix surged 12.49 percent.

Major shipbuilders HD Hyundai Heavy Industries and Hanwha Ocean jumped 8.22 percent and 11.34 percent, respectively.

Naver, a leading internet portal operator, mounted 6.25 percent, and Samyang Foods, best known for its smash hit instant ramyeon Buldak series, rose 3.37 percent.

The Korean won was trading at 1,463.35 won against the U.S. dollar as of 11:20 a.m., up 13.15 won from the previous session.

On Wednesday, Seoul shares plunged more than 12 per cent on Wednesday, closing below the 5,100-point mark, as mounting concerns over the economic fallout from the escalating Middle East conflict rattled investor sentiment. The Korean won also fell sharply against the US dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) tumbled 698.37 points, or 12.06 per cent, to close at 5,093.54, extending losses from a 7.24 per cent drop in the previous session, reports Yonhap news agency.

The 12.06 per cent fall marked the steepest one-day decline since Sept. 12, 2001, in the aftermath of the Sept. 11 terrorist attacks in the United States.

- IANS

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Reader Comments

P
Priya S
Interesting to see the 'sidecar' circuit breaker being used in Korea. We have similar mechanisms in India. It's a necessary tool to prevent flash crashes, but such wild swings are still scary for the average investor. Makes you appreciate a steady SIP in mutual funds.
R
Rohit P
Samsung and SK Hynix jumping over 11%! Their performance directly impacts the global tech supply chain, including many Indian manufacturers. This recovery is good news, but the underlying cause—Middle East tensions—is still a major risk. Not out of the woods yet.
S
Sarah B
As someone who follows Asian markets, this is a huge rebound. But calling it a "record sell-off" followed by a sharp rise feels a bit sensationalist. It's important for media to provide calm analysis instead of amplifying fear and frenzy. Just my two cents.
V
Vikram M
The mention of Samyang Foods' Buldak ramyeon made me smile 😄. Even in a financial crisis report, our love for instant noodles finds a way! On a serious note, it shows how consumer goods stocks can be defensive. Korean won's movement against USD is also crucial to watch.
K
Karthik V
This is why you shouldn't sell in a panic. The smart money was waiting to buy the dip. While the Iran crisis is serious, markets often overreact. A good lesson for retail investors everywhere, including us in India. Stay invested for the long term.

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