Seoul markets fall over 4% as tech shares drag

Seoul: South Korean stocks tumbled more than 4 per cent on Thursday due to losses in tech shares amid lingering concerns over profitability of artificial intelligence (AI) spending. The local currency rose against the US dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) fell 4.58 per cent, or 301.88 points, to close at 6,296.38, after falling as low as 6,238.32, reports Yonhap news agency. The index had risen 1.62 per cent and 3.76 per cent on Tuesday and Wednesday, respectively, driven by eased concerns over AI profitability. After opening 1.81 percent lower, the KOSPI extended its losses, prompting the bourse operator to activate a sell-side sidecar for the KOSPI for five minutes at 10:18 a.m., halting program trading for KOSPI-listed shares.

Trade volume was light at 281.8 million shares worth 25.9 trillion won ($18.2 billion), with winners outnumbering losers 489 to 380.