South Korean shares head for second weekly loss as AI stock selloff bites
SEOUL: Round-up of South Korean financial markets: South Korean shares fell on Friday and were poised to log a second weekly loss as a selloff in AI-related shares drove investors into safer assets globally. The won strengthened, while the benchmark bond yield fell. The benchmark KOSPI was down 118.59 points, or 2.14%, at 5,415.18 as of 01:38 GMT. The tech-heavy Nasdaq slid more than 1% on…
South Korean shares experienced a second consecutive weekly decline on Friday, as a selloff in AI-related stocks prompted investors to seek safer assets worldwide. The Korean won appreciated, while the benchmark bond yield decreased. The KOSPI index dropped 118.59 points, or 2.14%, reaching 5,415.18 as of 01:38 GMT. The tech-focused Nasdaq fell more than 1% on Thursday, with growth stocks suffering after Tesla and Meta's earnings did not quell AI-related worries. Meanwhile, oil prices rebounded, exacerbating market anxiety.
Prominent companies in the KOSPI index reported losses, including Samsung Electronics, which dropped 2.80%, and SK Hynix, which fell 0.57%. Other notable declines involved LG Energy Solution, down 1.79%, and Hyundai Motor and Kia Corp, down 3.81% and 2.85%, respectively. POSCO Holdings saw a significant 3.50% decrease, while Samsung BioLogics rose 6.47%.
Out of 912 traded issues, 95 shares rose, while 793 declined. Foreign investors were net sellers, offloading shares worth 589.3 billion won. The won strengthened to 1,322.6 per dollar on the onshore settlement platform, up 0.29% from the previous close of 1,326.5. Offshore trading saw the won at 1,322.1 per dollar, up 0.2% for the day, and at 1,320.8 in non-deliverable forward contracts.
The KOSPI has gained 28.50% this year, while the won has strengthened by 8.8% against the dollar. In money and debt markets, December futures on three-year treasury bonds increased 0.21 point to 103.29, with the three-year bond yield rising by 6.6 basis points to 3.774% and the 10-year yield falling by 7.1 basis points to 4.073%.
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