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Kospi plummets record 8.77 percent as recession fear hits Big Tech

Published: 05 Aug. 2024, 16:56 Updated: 05 Aug. 2024, 18:36

KIM JU-YEON
[email protected]

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,441.55 points on Monday, down 8.77 percent, or 234.64 points, from the previous trading session. The Kosdaq dropped 11.30 percent, or 88.05 points, to 691.28. [NEWS1]

Shares tumbled their furthest on record to a near nine-month low Monday amid intensifying fears of a U.S. economic slowdown, with Big Tech seeing under heavy sales. The won fell in value against the dollar.

The Kospi plummeted a record 234.64 points, or 8.77 percent, to close at 2,441.55, after dipping to as low as 2,273.97 at one point, following a 3.65 percent loss the previous session.

That is the lowest closing price since Nov. 14, when the index finished at 2,433.25.

Trade volume was heavy at 749.3 million shares worth 18.4 trillion won ($13.4 billion), with decliners sharply outnumbering gainers 919 to 10. Foreign investors dumped a net 1.5 trillion won worth of stocks to spearhead the record-breaking crash. Institutions also sold a net 273.6 billion won, while individuals purchased a net 1.7 trillion won.

The stock market was halted for 20 minutes during midday trading for the first time in four years due to the sharp decline.

The main bourse experienced its first circuit breaker since March 19, 2020, at 2:14 p.m., halting trading for 20 minutes as the Kospi fell more than 8 percent for more than one minute.

The sharp decline followed poorer-than-expected employment data in the United States and sluggish performance among Big Tech companies.

In Seoul, most stocks went south.

Samsung Electronics sank 10.3 percent to 71,400 won, while chipmaker SK hynix slumped 9.87 percent to 156,100 won.

Battery maker LG Energy Solution dropped 4.17 percent to 322,000 won, and automaker Hyundai Motor plunged 8.2 percent to 224,000 won.

Oil refiner SK Innovation dived 11.03 percent to 92,800 won while steel manufacturer Posco Holdings slid 11.78 percent to 314,500 won.

LG Chem plummeted 11.67 percent to 272,500 won, and shipbuilder Hanwha Ocean nose-dived 13.48 percent to 26,950 won.

The local currency was trading at 1,374.8 won against the dollar as of 3:30 p.m., up 3.6 won from the previous session.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds fell 14.6 basis points to 2.797 percent, and the return on the benchmark U.S. 10-year bonds fell 19.0 basis points to 3.789 percent.

BY KIM JU-YEON, YONHAP [[email protected]]