Seoul shares down nearly 4 pc as tech shares slide

Seoul, June 5 (IANS) Seoul shares traded nearly 4 per cent lower on Friday as investors locked in profits from a recent tech-led rally while monitoring uncertainty over US-Iran peace negotiations.

After opening 3.44 percent lower, the Korea Composite Stock Price Index (KOSPI) lost 334.97 points, or 3.88 percent, to 8,304.44 as of 11:20 a.m., recovering some of its earlier losses after plunging as much as 6.88 percent.

The Korea Exchange suspended program trading for the KOSPI for five minutes at around 9:08 a.m., a measure issued when the KOSPI 200 Futures index decreases 5 percent or more for at least one minute, reports Yonhap news agency.

Overnight, major U.S. stocks closed mixed. The Dow Jones Industrial Average rose 1.73 percent, and the S&P 500 added 0.41 percent to 7,584.31. The tech-heavy Nasdaq composite slipped 0.09 percent as declines in artificial intelligence (AI)-related stocks weighed on the index.

Broadcom tumbled more than 12 percent after the U.S. chipmaker’s quarterly results and outlook for AI-related revenue fell short of investors’ elevated expectations.

Oil prices retreated after three consecutive sessions of gains, as investor sentiment improved following reports that Israel had agreed to a conditional ceasefire with Lebanon.

In Seoul, most large-cap shares retreated. Market bellwether Samsung Electronics fell 3.56 percent, and its rival chipmaker SK hynix sank 5.96 percent.

AI investment firm SK Square decreased 5.51 percent, and top automaker Hyundai Motor fell 3.14 percent.

LG Electronics shed 8.23 percent, and Naver decreased 5.98 percent.

The Korean won was trading at 1,546.1 won against the U.S. dollar as of 11:20 a.m., down 16.4 won from the previous session, said the report.

—IANS

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