Seoul Stocks Sink As Foreign Investors Dump Shares

South Korean stocks retreated for the sixth straight session Thursday as foreign investors dumped a massive amount of chip stocks amid fears of a price fall of DRAM. The Korean won fell against the US dollar, Yonhap News Agency reported.

Photo Insert: Korean stocks took a tumble.

The benchmark Korea Composite Stock Price Index (KOSPI) fell 12.24 points, or 0.38 percent, to close at 3,208.38 points.Trading volume was high at about 635 billion shares worth some 20.2 trillion won (US$17.4 billion), with losers outnumbering gainers 452 to 404.

Foreigners sold a net 1.9 trillion won, the largest daily sell-off since May 12, while retail investors bought 1.8 billion won. Institutions purchased a net 56 billion won.

Electronic signboards at a Hana Bank dealing room in Seoul show the benchmark Korea Composite Stock Price Index (KOSPI) closed at 3,208.38 on Aug. 12, 2021, down 12.24 points or 0.38 percent from the previous session's close.

Stocks got off to a choppy start as investors took a wait-and-see mode against uncertainties over whether the estimate-beating consumer prices in July would hasten the timeline for the US Federal Reserve's tapering plan.

The KOSPI deepened its losses in the afternoon due to foreign and institutional selling. Chipmakers extended their slump to the second consecutive day on concerns over a drop in chip prices.

"The market decline was led by strong foreign selling of Samsung Electronics and SK Hynix shares," Mirae Asset analyst Park Gwang-nam said. More than 1.5 trillion won of sell-offs came from the electronic and electric sectors, specifically," he noted.

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