Expectations of easing tensions in the Middle East led to a rise in the domestic stock market, which was then hindered by profit-taking pressure and renewed negative issues from the Middle East. The KOSPI index rapidly surged in early trading, nearing a breakthrough of the 3000 mark, but it reduced its gains as profit-taking sales poured in.
According to the Korea Exchange on the 17th, the KOSPI index closed at 2950.30, up 3.64 points (0.12%) from the previous trading day. The index started at 2959.93, an increase of 13.27 points (0.45%) from the previous day, and at one point reached 2998.62, coming close to breaking the 3000 mark. However, it soon reduced its gains and changed direction, failing in its attempt to break the 3000 mark for the first time in 3 years and 5 months.
Individuals purchased a net 224.3 billion won, driving the index higher. Institutional investors showed a net buying trend in early trading but reversed to 'sell.' On that day, foreign and institutional investors sold a net 113 billion won and 105.6 billion won, respectively. In the KOSPI 200 futures market, institutional investors showed a net buying dominance of 121.6 billion won. The futures index peaked at 403.35 during the session, surpassing the 400 mark for the first time in about a year since July 11 of last year (402.45).
The strength of the securities market in early trading was led by semiconductor stocks. With favorable news from rising U.S. tech stocks and semiconductor indices, Samsung Electronics and SK hynix continued their rallies, although they narrowed their gains toward the end of the session. SK hynix rose to 260,000 won (4.84%), setting a new record since the 2000s.
In the early morning, Iran's request for mediation of a ceasefire seemed to alleviate the sense of anxiety, but by mid-morning, U.S. President Donald Trump mentioned the evacuation of citizens in Tehran, causing the stock market to start fluctuating. Subsequently, after Trump returned early from the G20 summit and instructed the convening of the National Security Council, concerns about the resurgence of military conflicts between Iran and Israel increased.
Meanwhile, Doosan Enerbility, KEPCO E&C, and Hyundai E&C, which had been soaring, closed lower. Stocks of Kakao Pay, Samsung SDS, and NAVER, which had risen due to expectations for a won stablecoin and artificial intelligence (AI) policies, also turned to decline.
The renewable energy sector also showed weakness. Hanwha Solutions, OCI Holdings, and SK eternix fell sharply. This was in response to a proposal by the U.S. Senate Finance Committee to completely eliminate tax credits for solar and wind energy by 2028. In the New York market, the stock price of solar panel manufacturer Sunrun fell by 28% in after-hours trading, while solar inverter manufacturer Enphase Energy dropped by 16%.
On the other hand, the proposed tax cut included an expansion of investment tax credits for semiconductor companies, bringing a tailwind to Hanwha Vision and EO Technics in the KOSDAQ market, while Shin Poong Pharm hit the upper limit after news of obtaining a European patent for malaria treatment drug Piramax related to COVID-19.
Lee Kyung-min, a researcher at DAISHIN SECURITIES, noted, "The psychological resistance encountered around the 3000 mark has intensified profit-taking pressure. In particular, profit-taking sales emerged, especially from sectors such as nuclear energy, IT, and software that had recently risen on thematic momentum, while the influx of geopolitical issues from the Middle East also dampened investor sentiment."
The KOSDAQ index recorded 775.65, down 1.61 points (0.21%) from the previous trading day. The index started at 780.08, up 2.82 points (0.36%) compared to the previous day, but similarly reversed to a downturn during the session. In the KOSDAQ market, institutional investors sold a net 72.6 billion won, dragging the index down, while individuals and foreigners bought a net 73.9 billion won and 12.5 billion won, respectively.
Among the top 10 stocks by market capitalization, eight stocks, including Alteogen, ECOPRO BM, HLB, Ecopro, Rainbow Robotics, HUGEL, PharmaResearch, and LigaChem Biosciences, declined. Peptron and CLASSYS finished slightly higher. D&D Pharmatech continued to show strength after positive news on clinical trial Phase 2 efficacy.
On that day, the weekly closing exchange rate of the won against the U.S. dollar in the Seoul foreign exchange market (as of 3:30 p.m.) was 1362.7 won, down 1.1 won from the previous day.