By Cho Hyung-kwon
Staff Reporter

It was another Black Monday for the Seoul stock markets on Monday as the main bourse plummeted to a seven-month low while the technology-filled Kosdaq saw its biggest decline in almost two years.

Soaring oil prices, concerns of an interest rate hike in the U.S., and worries over China’s economic slowdown continued to weigh heavily on the equity markets around the Asia Pacific region.

The supply and demand condition of the local market was also a negative factor as a marginal net selling by foreign investors threw cold water onto market sentiment.

The Korea Composite Stock Price Index (KOSPI) tumbled 39.48 points, or 5.13 percent, to 728.98, the lowest since Oct. 8, 2003, when it finished at 722.76.

The market suffered its second largest decline of the year with the biggest fall coming on last Monday, when the benchmark index slumped 5.73 percent.

Meanwhile the tech-filled Kosdaq also plunged 29.18 points, or 7.2 percent, to 375.75, the lowest level since March 19, 2003, when it closed at 367.70.

The stock market in India was suspended from trading for one hour for the first time ever after it plunged more than 11 percent on concerns over political uncertainties after the opposition party won the election last week. Trading was suspended again after it fell by more than 15 percent.

Japan’s Nikkei 225 Average lost 3.18 percent to 10,505.05 while Taiwan’s market slumped 5.1 percent to a nine-month low.

But the Korean won strengthened against the U.S. dollar, reflecting the negative exposure of the equity markets to external shocks.

Oil prices continued to rise to historic highs with the West Texas Intermediate (WTI) crude oil closing at its highest level since 1983 at the New York Mercantile Exchange (NYMEX).

The WTI crude oil soared to 41.59 per barrel during the NYMEX’s electronic after-hours trading on Monday.

Foreign investors continued to sell Korean equities worth 43 billion won and retail investors also unloaded 68 billion won of shares, dragging the index lower.

Samsung Electronics declined 6.81 percent to 458,000 won, the lowest in more than four months.

LG Electronics slumped 10.18 percent to 53,800 won, Hyundai Motor lost 8.66 percent to 39,000 won and Kookmin Bank put off 8.2 percent to 35,250 won.

On the Kosdaq market, 184 issues fell to the daily limit of 12 percent with declining issues trouncing advancers by an eight to one ratio.

kevincho@koreatimes.co.kr