(2nd LD) Seoul shares plunge over 3 pct on tech sell-off amid Mideast, inflation woes

Seoul shares experienced a significant drop of over 3 percent on Monday, extending their four-day losing streak. The decline was primarily driven by a massive sell-off in technology stocks, which were hit hard by concerns over inflation and rising oil prices. The Korea Composite Stock Price Index (KOSPI) closed down 241.69 points, or 3.65 percent, at 6,384.24.

Trade volume was moderate, with 313 million shares traded worth 21.33 trillion won ($16 billion), and there were more decliners than advancers (717 to 166). Institutions and foreigners sold stocks worth a combined 112.67 billion won, while individuals bought stocks worth 1.47 trillion won. Analysts suggested that rebalancing of semiconductor-focused ETFs and potential completion of treasury stock purchases by Samsung Electronics and SK hynix contributed to the market's bearish sentiment.

The dip in oil prices was attributed to tensions in the Middle East, with renewed Houthi attacks on Saudi Arabia's main airport potentially disrupting energy supplies and exacerbating inflationary pressures. Major companies such as Samsung Electronics, SK hynix, Hanwha Aerospace, and Hyundai Motor saw their shares decline by 4.39 percent, 4.52 percent, 3.25 percent, and 1.39 percent, respectively.

Conversely, HMM and KT&G were among the few gainers, with their stocks rising by 4.81 percent and 1.58 percent, respectively. The Korean won strengthened slightly against the U.S. dollar, closing at 1,335.1 won per dollar compared to the previous session's close of 1,342.8 won. Bond prices, which move inversely to yields, saw a rise in prices, with the yield on three-year Treasurys falling by 6.2 basis points to 3.921 and the yield on five-year government bonds decreasing by 5.7 basis points to 4.101.