Seoul, March 13 (IANS) South Korean stocks trimmed losses late on Friday morning but continued to trade in negative territory as global crude prices fluctuated after the new Iranian leader vowed to keep the blockade of the Strait of Hormuz.

The benchmark Korea Composite Stock Price Index (KOSPI) fell 76.62 points, or 1.37 percent, to 5,506.63 as of 11:20 a.m.

Global crude prices have swung back to the $100 level after extreme volatility, with disruptions at the key waterway in the Middle East showing no signs of easing despite U.S. President Donald Trump’s claim the war is nearing an end, reports Yonhap news agency.

In Seoul, top tech giant Samsung Electronics slipped 1.76 percent, and SK hynix lost 1.08 percent.

Due to global oil supply disruptions, investors scooped up nuclear power plant builders, with Daewoo Engineering & Construction soaring 24.19 percent and Hyundai Engineering & Construction adding 5.27 percent.

Financial firms traded bearish, with KB Financial falling 0.54 percent and Shinhan Financial losing 1.31 percent.

Top online portal giant Naver edged up 0.11 percent, and Kakao remained unchanged at 50,400 won.

The Korean won was trading at 1,486.7 won against the U.S. dollar, down 5.5 won from the previous session.

Industry Minister Kim Jung-kwan on Friday urged oil refineries and gas stations to cooperate with the government’s fuel price cap system introduced to ease cost burdens in the wake of the Middle East crisis.

Kim made the call in a meeting with officials from South Korean oil refineries, gas stations and the Korea National Oil Corp. held on the first day of the fuel price cap system implementation, according to the Ministry of Trade, Industry and Resources.

The temporary cap system took effect at midnight Thursday, setting maximum prices of products oil refineries supply to gas stations and distributors.

The initial price ceiling was set at 1,724 won (US$1.16) per litre for regular gasoline, 1,713 won per litre for diesel and 1,320 won per litre for lamp oil.

—IANS

na/