It was a day when global variables such as the Federal Reserve's decision to hold its benchmark interest rate and the escalation of the Middle East war dragged down the domestic stock market. Still, buying by individual investors limited the index's decline and served as a support.
On the 19th, the KOSPI closed at 5,763.22, down 2.73% (161.81 points) from the previous day. The KOSPI opened the session at 5,761.40, down 163.63 points (2.76%), rose above the 5,800 level during the session, but ultimately ended trading around the 5,760 level.
The main board was supported by individuals. While foreigners sold more than 1.8 trillion won, individuals bought more than 2.4 trillion won. Institutions recorded a net sell of 665.9 billion won.
Kang Jin-hyeok, a researcher at Shinhan Investment & Securities, said, "Foreigners net sold cash equities and futures to avoid risk, and individual investors used the shock as a dip-buying opportunity."
The market reacted sensitively to global variables that day. Overnight, the Fed held the benchmark rate at 3.50%–3.75%, signaling a hawkish stance. Federal Reserve Chair Jerome Powell emphasized uncertainty, saying of the war's impact, "The key is that no one can predict it." In particular, he hinted with concern that the war-driven rise in oil prices is stoking inflation expectations.
In fact, the Middle East battlefield situation is deteriorating severely. After Israel bombed South Pars, Iran's largest gas field, Iran retaliated by attacking Qatar and Saudi Arabia, signaling an escalation. International oil prices then surged, directly hitting global inflation fears. In the Seoul foreign exchange market, the won–dollar rate jumped 17.9 won from the previous day to close at 1,501 won, threatening a psychological threshold.
Lee Kyung-min, a researcher at Daishin Securities, said, "The domestic market is moving in tandem with oil prices and the exchange rate," adding, "It is testing support around the 5,800 level as risks and inflation concerns are being priced in."
Large-cap stocks on the main board also closed lower across the board. Samsung Electronics and SK hynix held the 200,000-won and 1 million-won lines, respectively, but still fell 3% and 4%.
At the same time, the KOSDAQ closed at 1,143.48, down 1.79% (20.90 points) from the previous day. The KOSDAQ opened at 1,139.12, down 25.26 points (2.17%) from the previous day.
The KOSDAQ was also lifted by individuals. Individuals were net buyers of 502.2 billion won, while foreigners and institutions were net sellers of 206.2 billion won and 262.3 billion won, respectively.
In the case of the KOSDAQ, investor sentiment deteriorated as on the KOSPI, but some obesity-treatment corporations, including Sam Chun Dang Pharm, held up. On the eve of the launch of the new title Crimson Desert, Pearl Abyss hit the lower limit after receiving below-expectation reviews.