Seoul stocks dip over 5 pct on chip sell-off after record surge

Seoul Stocks Tumble Over 5% as Investors Cash In on Chip Rally

SEOUL — Seoul stocks plunged by more than 5 percent on Monday, as investors rushed to lock in profits from semiconductor heavyweights following a record surge in the previous session. The benchmark Korea Composite Stock Price Index (KOSPI) fell 338 points, or 5.12 percent, to close at 6,257.45.

The decline came after the index had surged by nearly 18 percent on Friday, driven by sharp gains in chip makers. According to Yonhap News Agency, shares of SK hynix and Samsung Electronics — the country's two largest chip manufacturers — rose by almost the daily permissible limit on Friday. That rally was fueled by expectations that the unwinding of leveraged exchange-traded funds was nearing its end.

Coverage Comparison

Yonhap News Agency, South Korea's leading wire service, provided consistent reporting on the market's steep drop. All reports highlighted the KOSPI's 5.12 percent fall to 6,257.45, attributing the sell-off to profit-taking by foreign investors, particularly in semiconductor stocks. Analyst Lee Kyoung-min of Daishin Securities was quoted as saying the market was weighed down by foreign investors going into profit-taking mode.

While the core facts were uniform across the wire's updates, later versions added more detail. One update reported that trade volume was low at 270.9 million shares worth 26.1 trillion won (US$18.2 billion), with winners slightly outnumbering losers 454 to 417. Another version added that foreigners and institutional investors were net sellers, offloading a combined net 4.77 trillion won, while retail investors bought a net 4.65 trillion won.

Additional details on individual stocks and the broader market emerged in the most complete versions. Large-cap shares closed mixed: Samsung Electronics tumbled 8.76 percent to 239,500 won, and SK hynix shed 8.79 percent to 1,567,000 won. Oil refiners lost ground as oil prices declined following the easing of U.S.-Iran tensions, with S-Oil falling 4.4 percent and GS dipping 4.94 percent. Among the gainers were Hyundai Motor, up 1.29 percent, and defense firm Hanwha Aerospace, which inched up 0.22 percent.

The Korean won weakened, quoted at 1,429.8 won against the U.S. dollar as of 3:30 p.m., down 5.8 won from the previous stock trading close. Bond prices, which move inversely to yields, closed higher, with the yield on three-year Treasurys falling 1.6 basis points to 3.742 percent.

Key Claims

• The KOSPI fell 338 points, or 5.12 percent, to 6,257.45 on Monday.
• The index had surged nearly 18 percent on Friday, driven by sharp gains in Samsung Electronics and SK hynix.
• Foreign and institutional investors were net sellers, offloading a combined net 4.77 trillion won.
• Retail investors were net buyers, purchasing a net 4.65 trillion won.
• Trade volume was 270.9 million shares worth 26.1 trillion won.
• Samsung Electronics fell 8.76 percent, and SK hynix fell 8.79 percent.
• The Korean won weakened 5.8 won to 1,429.8 won against the dollar.
• The yield on three-year Treasurys fell 1.6 basis points to 3.742 percent.
• Daily turnover in single-stock leveraged ETFs fell sharply, according to one report.
• Investor sentiment was partly supported by declining oil prices after President Donald Trump canceled a potential military assault on Iran.