KOSPI Slides Sharply Amid Foreign Selling and Tech Stock Weakness
Seoul, March 30: South Korean equities witnessed a steep decline on Monday, with the benchmark Korea Composite Stock Price Index (KOSPI) dropping 3.98 percent amid heightened geopolitical tensions and heavy selling in large-cap technology stocks.The KOSPI fell 216.2 points to 5,222.67 as of 11:20 a.m. Seoul time. The index had opened nearly 5 percent lower and remained under sustained pressure during early trade, primarily due to strong foreign outflows.
Middle East Conflict Fuels Oil Supply Concerns
Market sentiment weakened significantly as the ongoing conflict involving Iran intensified, raising concerns over global oil supply disruptions. The war, which began in late February following U.S.-Israeli strikes on Iran, has continued to escalate.Over the weekend, Houthi forces launched missile attacks on Israel and signaled further military action unless strikes on Iran are halted. This development has pushed global oil prices higher, adding to uncertainty across financial markets.
U.S. President Donald Trump stated that negotiations with Iran are underway to end the conflict. However, the deployment of thousands of U.S. troops to the region has heightened fears of potential ground operations.
Heavy Losses Across Key Sectors
Large-cap stocks across sectors recorded notable losses, led by technology and automotive companies.Samsung Electronics declined 3.9 percent, while SK Hynix dropped sharply by 5.75 percent. In the automobile segment, Hyundai Motor fell 5.71 percent and Kia slipped 4.24 percent.
Pharmaceutical and biotech stocks also faced selling pressure, with Samsung Biologics losing 4.92 percent and Celltrion declining 2.91 percent.
Industrial and defense-related companies were not spared. Hanwha Aerospace fell 3.45 percent, while Doosan Enerbility dropped 5.2 percent.
Shipbuilding stocks saw significant declines, with HD Hyundai Heavy falling 4.81 percent and Hanwha Ocean slipping 4.95 percent.
Select Battery Stocks Buck the Trend
Despite the broad-based sell-off, some battery manufacturers posted gains. LG Energy Solution rose 3.55 percent, and Samsung SDI advanced 1.6 percent, offering limited support to the market.Korean Won Weakens Against US Dollar
The South Korean currency also edged lower amid the market volatility. The won was trading at 1,513.2 against the U.S. dollar as of 11:20 a.m., down 4.3 won from the previous session.Market Outlook Remains Volatile
The sharp decline in South Korean equities reflects growing investor concerns over geopolitical risks and rising oil prices, which continue to weigh on global financial markets.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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