This photo, taken Monday, shows the trading room of Hana Bank in Seoul as South Korean stocks dropped more than 8 percent on concerns over AI profitability and fears over a possible rate hike by the U.S. Fed. Photo by Yonhap
South Korean stocks nosedived more than 8 percent Monday, extending their losing streak to a third consecutive session, as investors dumped market heavyweights on renewed woes over artificial intelligence (AI) profitability and concerns over a possible hawkish pivot of the U.S. Federal Reserve.
The local currency rose against the U.S. dollar after opening at a 17-year low, in the face of verbal intervention by financial authorities.
The benchmark Korea Composite Stock Price Index (KOSPI) plunged 676.18 points, or 8.29 percent, to close at 7,484.41, after falling as low as 7,442.73. The secondary KOSDAQ index sank more than 9 percent to end at 911.39.
The KOSPI's trade volume was heavy at 448.3 million shares worth 47.8 trillion won (US$31.2 billion), with losers sharply outnumbering winners 873 to 42. Foreigners and institutions dumped local shares worth 355.5 billion won and 1.6 trillion won, respectively, while retail investors scooped up 1.76 trillion won.
