Seoul shares dip 1.76 pct on rising oil prices, inflation woes

Seoul shares experienced a significant decline of 1.76 percent on Friday, as surging oil prices intensified inflation concerns, according to Yonhap news agency. The benchmark Korea Composite Stock Price Index (KOSPI) initially dropped 3.29 percent before narrowing its losses to close at 6,909.91 points, down 1.76 percent. The trading volume remained moderate, with 265.92 million shares exchanged, valued at 19.39 trillion won (US$14.4 billion). However, the number of losing stocks outnumbered gaining ones by a ratio of 473 to 368.

Investors were cautious as they awaited key U.S. inflation data, which would provide insights into the Federal Reserve's future interest rate policy. Overnight, the sell-off in U.S. stocks was triggered by rising oil prices and escalating tensions in the Middle East. The Dow Jones Industrial Average experienced a 0.6 percent decline, while the tech-heavy Nasdaq Composite fell 0.65 percent.

The disparity between individual and institutional investment activities was evident, with individuals netting a purchase of 1.87 trillion won worth of stocks, while institutions and foreigners collectively sold a combined net of 1.22 trillion won and 2.29 trillion won, respectively. The market's focus was on the upcoming release of the U.S. consumer price index (CPI) report, which is expected to shed light on the extent to which higher energy costs are exacerbating inflationary pressures.