Kospi sinks over 5% as investors lock in gains

Seoul stocks plunged by more than 5 percent Monday as investors went to lock in profits of semiconductor heavyweights following a record surge the previous session. The local currency fell against the greenback.

The Kospi fell 338 points, or 5.12 percent, to 6,257.45.

The index surged by nearly 18 percent on Friday.

Trade volume was low at 270.9 million shares worth 26.1 trillion won ($18.2 billion). Winners slightly outnumbered losers 454 to 417.

Foreigners and institutional investors were net sellers, offloading a combined net 4.77 trillion won. Retail investors snatched up a net 4.65 trillion won.

The market was weighed down by foreign investors who went profit-taking, especially in semiconductor stocks, Lee Kyoung-min, an analyst from Daishin Securities, said.

Shares of SK hynix and Samsung Electronics — the country's two chip giants — rose by almost the daily permissible limit on Friday, on the assessment that the unwinding of leveraged exchange-traded funds is nearing its end.

Investor sentiment was also partially lifted on declining oil prices, after U.S. President Donald Trump said he has canceled a potentially massive military assault on Iran.

Large-cap shares closed mixed.

Samsung tumbled 8.76 percent to 239,500 won, and SK hynix shed 8.79 percent to 1,567,000 won.

Oil refiners lost ground amid a decline in oil prices following the easing of U.S.-Iran tensions.

S-Oil fell 4.4 percent to 121,700 won, and GS, which owns the refiner GS Caltex, dipped 4.94 percent to 84,600 won.

Among the winners were Hyundai Motor, which rose 1.29 percent to 393,000 won, and defense giant Hanwha Aerospace, which inched up 0.22 percent to 919,000 won.

The local currency fell 5.8 won from the previous session to trade at 1,429.8 won against the greenback at 3:30 p.m.

Yonhap