Seoul, Nov 12 (IANS) South Korean stocks fell 0.6 per cent on Thursday to end their two-day rally, weighed heavily down by Nvidia’s leadership risks. The local currency was trading higher against the US dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) closed down 32.63 points, or 0.61 percent, at 5,342.73, reversing from a 4.39 percent rise on Tuesday and a 2.6 percent gain on Wednesday.
After opening 0.2 percent higher, the index fluctuated between gains and losses throughout the morning trading session, rising as high as 5,458.84.
U.S. media said Nvidia’s board was preparing to oust CEO Jensen Huang following reports on Huang’s alleged multiple extramarital affairs.
Investor sentiment was largely affected by Huang’s future as the U.S. chip giant is in close business ties with Korean tech companies.
Trade volume was light at 233.7 million shares worth 20.6 trillion won (US$15.5 billion), with losers outnumbering winners 595 to 268.
Foreigners bought a net 370.4 billion won worth of stocks, while institutions offloaded a net 690.3 billion won and individuals sold a net 204.3 billion won.
“The KOSPI was hit by uncertainties stemming from the scandal involving Nvidia CEO Jensen Huang,” said Lee Kyoung-min, an analyst from Daishin Securities. “At the same time, some investors sought profits following the recent rally.”
Most semiconductor-related shares finished in negative territory, while Samsung Electronics rose 0.97 percent to 208,000 won.
Chip giant SK hynix dropped 1.8 percent to 1.25 million won, and Hanmi Semiconductor, a leading chip equipment manufacturer, retreated 1.14 percent to 181,900 won.
Samsung Electro-Mechanics tumbled 4.01 percent to 886,000 won, and SK Square, the parent of SK hynix, declined 0.63 percent to 791,000 won.
Internet giant Naver, where Nvidia is the third-largest shareholder, plunged 6.43 percent to 181,800 won.
Defence shares were also bearish as industry leader Hanwha Aerospace fell 0.76 percent to 654,000 won and LIG D&A went down 2.02 percent to 364,500 won.
The dollar was quoted at 1,330.7 won against the U.S. dollar as of 3:30 p.m., up 2.9 won from the previous stock session’s close.
–IANS
na/
