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, continuing their four-day decline. This downturn was primarily driven by a large-scale sell-off in technology stocks, which were adversely affected by concerns over inflation and high oil prices. The benchmark Korea Composite Stock Price Index (KOSPI) fell 241.69 points, or 3.65 percent, to close at 6,384.24.

The trading volume was relatively modest, with 313 million shares changing hands, worth 21.33 trillion won (US$16 billion). Declining stocks outnumbered rising ones by a ratio of 717 to 166.

Institutions and foreigners were among the major sellers, with net sales of 110.65 billion won and 2.02 trillion won worth of stocks, respectively. Conversely, individual investors made a net purchase of 1.47 trillion won. The increase in oil prices was attributed to heightened tensions in the Middle East following Houthi attacks on Saudi Arabia's primary airport over the weekend.

Analysts warned that a wider regional conflict could exacerbate energy supply disruptions, further compounding inflationary pressures and challenging the Federal Reserve's efforts to curb inflation.