KOSPI crashes nearly 10 pc in S. Korea on massive tech sell-offs
Seoul, June 23 (IANS) South Korean stocks tumbled nearly 10 per cent on Tuesday as foreign investors dumped major semiconductor shares and other market heavyweights amid profit-taking, tracking overnight losses in US technology stocks. The local currency weakened against the US dollar.
After choppy trading, the benchmark Korea Composite Stock Price Index (KOSPI) plunged 910.71 points, or 9.99 percent, to close at 8,203.84.
The Korea Exchange (KRX), the bourse operator, activated a circuit breaker at around 2:33 p.m. after the KOSPI plummeted more than 8 percent from the previous session's close.
It marked the fourth time this year and the 10th time on record that the KRX has halted trading of all stocks for 20 minutes.
Trade volume was heavy at 483.7 million shares worth 59.9 trillion won (US$38.9 billion) with losers outnumbering winners 856 to 46.
Foreign and institutional investors sold a net 4.13 trillion won and 4.55 trillion won, respectively. Meanwhile, retail investors were net buyers, purchasing 8.58 trillion won alone.
Overnight, U.S. Vice President JD Vance said a "very good foundation" had been established for negotiations toward a final agreement with Iran, while mediators also reported progress in the talks.
Despite the diplomatic developments, U.S. stocks closed mixed, with the tech-heavy Nasdaq Composite falling 1.3 percent amid renewed concerns over major technology companies.
Shares of SpaceX tumbled more than 16 percent after reports that the company is selling bonds as part of a major fundraising effort to support its artificial intelligence initiatives.
"Valuation concerns have grown for major South Korean semiconductor stocks after they repeatedly hit record highs in a short period, prompting heavy selling by foreign investors and increasing market volatility," said Seo Sang-young, an analyst at Mirae Asset Securities.