South Korean Shares Decline on Fresh Conflict in Middle East, Higher Oil Prices
South Korean shares closed lower on Thursday, snapping a four-day winning streak as investors were skeptical of the recent rally led by AI boom.Investors also took a moment to ponder the increasing oil prices after the U.S. attacked Iran despite the ongoing peace talks.The Korea Composite Stock Price Index or Kospi fell 43.41 points, or 0.5%, to end at 8,185.29. The Kosdaq also decreased by 28.77 points, or 2.5%, to close at 1,104.36.Oil prices climbed on Thursday after fresh U.S. strikes in Iran raised concerns over shipping disruptions in the Strait of Hormuz. Brent crude added more than 3% to around $97 a barrel, while U.S. crude gained over 3%, as Iran's Revolutionary Guards said they had targeted a U.S. airbase following American strikes on a site seen as threatening regional shipping and U.S. forces.In economic news, the Bank of Korea kept its base rate unchanged at 2.50% for the inter-meeting period amid high inflationary pressure and uncertainties surrounding developments in the Middle East, the central bank said in a Thursday release.In corporate news, Megabox JoongAng took out a loan of 21 billion won from its parent and entertainment giant ContentreeJoongAng (KRX:036420) to secure liquidity, according to a filing with the Korea Exchange on Thursday.Shares of ContentreeJoongAng fell nearly 1% at market close.
