As the global financial market swung on the fallout from the war among the United States, Israel, and Iran, Korea's stock market on the 6th ended at the prior session's level. Foreign investors were net sellers and individuals were net buyers, with intraday gains and losses repeating, but the index held the 5,580 level to close slightly higher. The KOSDAQ index jumped more than 3%.
On the day, the KOSPI index finished the transaction at 5,584.87, up 0.97 points (0.02%) from the previous session. The KOSPI index repeatedly rose and fell during the session. It plunged more than 2% early, then seemed to turn higher, but at one point in the morning it fell more than 3%. In the afternoon, the losses narrowed and the index closed slightly higher.
What defended the index was household funds. Individuals were net buyers of 3 trillion won on the Korea Exchange. Foreign investors sold a net 2 trillion won in the cash market and a net 6,000 contracts in KOSPI200 futures.
Samsung Electronics and SK hynix extended declines, but defense stocks, including Hanwha Aerospace, rose across the board. Shares in industrials such as construction, steel, and heavy industry also gained. With instability in the Middle East persisting, expectations that demand for industrial goods, including weapons, will increase appeared to buoy investor sentiment.
U.S. stocks fell across the board the previous day, but U.S. index futures were slightly higher. Although foreigners were net sellers in the domestic market on the day, some noted it is difficult to interpret this as a reduction in exposure to Korean equities.
While the KOSPI index repeatedly rose and fell, the KOSDAQ index surged. It appears to be the result of investment funds flowing in on expectations for policies to revitalize the KOSDAQ market.
The KOSDAQ index finished the transaction at 1,154.67, soaring 38.26 points (3.43%) from the previous day. As KOSDAQ150 futures prices surged, a "buy sidecar" was triggered during early trading, temporarily halting the effectiveness of program buy orders for five minutes.