(LEAD) Seoul shares plunge over 12 pct on Middle East conflict fears; won tumbles

(LEAD) stocks-summary

(LEAD) Seoul shares plunge over 12 pct on Middle East conflict fears; won tumbles

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SEOUL, March 4 (Yonhap) -- Seoul shares plunged more than 12 percent Wednesday, closing below the 5,100-point mark, as mounting concerns over the economic fallout from the escalating Middle East conflict rattled investor sentiment. The Korean won also fell sharply against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) tumbled 698.37 points, or 12.06 percent, to close at 5,093.54, extending losses from a 7.24 percent drop in the previous session.

The 12.06 percent fall marked the steepest one-day decline since Sept. 12, 2001, in the aftermath of the Sept. 11 terrorist attacks in the United States.

Trade volume was heavy at 1.6 billion shares worth 62.6 trillion won (US$42.5 billion). Losers sharply outnumbered winners 908 to 12.

The Korea Exchange (KRX) triggered circuit breakers shortly after the KOSPI fell more than 8 percent amid heightened geopolitical tensions.

Earlier in the session, the KRX activated a five-minute sell-side sidecar immediately after the opening bell, temporarily halting program-driven sell orders in KOSPI futures. A similar sidecar was also issued on the tech-heavy KOSDAQ market.

The U.S. and Israel carried out coordinated strikes on Iran over the weekend, killing Iran's Supreme Leader Ayatollah Ali Khamenei. U.S. President Donald Trump signaled the possibility of a prolonged military campaign.

Overnight, the Dow Jones Industrial Average fell 0.83 percent, while the tech-heavy Nasdaq composite lost 1.02 percent.

Institutions sold a net 579.4 billion won worth of stocks, offsetting foreigners and individuals' stock purchases of 228.78 billion won and 72.9 billion won, respectively.

"Institutional investors remained net sellers for a second straight session amid escalating Middle East tensions, dragging the index below the 6,000-point mark," Kang Jin-hyeok, an analyst at Shinhan Securities Co., said.

In Seoul, most large-cap shares closed sharply lower.

Market bellwether Samsung Electronics plunged 11.74 percent to 172,200 won, and its chipmaking rival SK hynix fell 9.58 percent to 849,000 won.

Top carmaker Hyundai Motor declined 15.8 percent to 501,000 won, and its smaller affiliate Kia dropped 14.04 percent to 156,700 won.

Defense giant Hanwha Aerospace fell 7.61 percent to 1,323,000 won, and leading refiner SK Innovation dropped 16.73 percent to 109,000 won.

Flag carrier Korean Air shed 7.94 percent to 23,200 won, and leading shipping firm HMM tumbled 16.33 percent to 20,500 won.

The Korean won was quoted at 1,476.20 won against the U.S. dollar at 3:30 p.m., down 10.1 won from the previous session's close.

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