Seoul shares turn lower amid renewed Hormuz tensions

Seoul, Aug 7 (IANS) Seoul shares turned lower late on Friday morning as renewed geopolitical tensions in the Middle East weighed on investor sentiment.

After opening 1.09 percent higher, the benchmark Korea Composite Stock Price Index (KOSPI) traded down 36.07 points, or 0.57 percent, to 6,260.31 as of 11:20 am (local time), reports Yonhap news agency.

The index plunged 4.58 percent in the previous session, dragged down mainly by losses in technology stocks.

Overnight, U.S. stocks declined. The Dow Jones Industrial Average fell 0.85 percent, and the tech-heavy Nasdaq Composite declined 0.06 percent amid a lack of clarity over a possible agreement between the United States and Iran to reopen the Strait of Hormuz.

Iran reportedly plans to deny U.S. and Israeli ships access to the strategic waterway and require compensation from countries it considers hostile before allowing them passage.

Institutions bought a net 423.3 billion won (US$298 million) worth of stocks, while foreigners and individuals sold a net 179.5 billion won and 223.1 billion won, respectively.

In Seoul, large-cap stocks were mixed.

Chip giant SK hynix fell 4.01 percent, top carmaker Hyundai Motor declined 2.38 percent, and Lotte Shopping plunged 15.72 percent.

Shipbuilder Hanwha Ocean dropped 2.98 percent, and Hyundai Steel shed 2.66 percent.

Among gainers, market bellwether Samsung Electronics rose 0.98 percent, and defence giant Hanwha Aerospace climbed 1.8 percent.

Leading steelmaker POSCO Holdings gained 2.51 percent, and Korea Aerospace Industries advanced 4.6 percent.

Among decliners, top carmaker Hyundai Motor fell 1.94 percent, and state-run utility Korea Electric Power Corp. backtracked 1.81 percent.

The Korean won was trading at 1,419.45 won against the U.S. dollar as of 11:20 a.m., up 4.65 won from the close of stock trading the day before, said the report.

—IANS

na/