Seoul shares end lower, snapping 5-day winning streak, on profit-taking

Seoul's stock market witnessed a reversal of fortune on Tuesday, concluding a remarkable five-day winning streak with a 1.55% drop to close at 6,869.83 points. After an impressive opening gain of 2%, the Korea Composite Stock Price Index (KOSPI) experienced a sharp decline, shedding 108.11 points. The trading volume remained steady with 399.04 million shares exchanged, valued at 29.64 trillion won, with the number of declining stocks surpassing the gainers by a margin of 679 to 195.

Institutional investors led the selling, offloading stocks worth 784.9 billion won, while foreign and retail investors contributed a net buying of 91.4 billion won and 731.29 billion won, respectively.

The recent downturn was attributed to profit-taking by investors, as well as the waning expectations for a resolution to the ongoing conflict between Iran and the United States. The U.S. stock market had experienced a decline over the weekend, with the Dow Jones Industrial Average falling by 0.51% and the tech-focused Nasdaq composite retreating 0.32%.

Elevated oil prices continued to fuel inflation concerns, further dampening investor sentiment. The fading hopes for a deal with Iran were exacerbated by remarks from U.S. President Donald Trump, who expressed a lack of interest in extending the agreement that was set to expire.