On the 13th, the KOSPI index opened down in the 2% range. The drop came as uncertainty grew after the first cease-fire talks between the United States and Iran collapsed and the United States signaled a blockade of the Strait of Hormuz.
As of 9:07 a.m., the KOSPI index was down 1.87% (109.34 points) from the previous session at 5,749.53. The KOSPI started the day at 5,737.28, down 121.59 points (2.08%).
The main bourse is being led by individual investors. Individuals are net buying 124.4 billion won, while foreigners and institutions are net selling 108.4 billion won and 25.2 billion won, respectively.
Most top market-cap stocks on the main bourse are falling. Samsung Electronics and SK hynix are down in the 3% and 2% ranges, respectively, while Hyundai Motor, LG Energy Solution, SK Square, Samsung Biologics, Doosan Enerbility, and KB Financial are declining. Hanwha Aerospace alone is rising.
At the same time, the KOSDAQ index was down 1.48% (16.23 points) from the previous session at 1,077.40. The KOSDAQ opened at 1,076.85, down 16.78 points (1.53%) from the previous session.
Most top market-cap stocks on the KOSDAQ are also falling. EcoPro BM, Alteogen, Sam Chun Dang Pharm, Rainbow Robotics, ABL Bio, LEENO Industrial, Kolon TissueGene, HLB, and LigaChem Biosciences are declining, while only EcoPro is rising.
With the first cease-fire talks between the United States and Iran collapsing, uncertainty around the Middle East continues to grow. The two sides held 21 hours of talks from the 11th to the 12th but failed to narrow differences over banning Iran from possessing nuclear weapons.
U.S. President Donald Trump said on the morning of the 12th via social media after the talks collapsed, "The U.S. Navy will immediately begin a blockade of all vessels entering or leaving the Strait of Hormuz." The U.S. military said it would begin blockade measures for all maritime traffic entering and leaving Iranian ports from 10 a.m. on the 13th (11 p.m. in Korea on the 13th).
With a re-blockade of the Strait of Hormuz imminent, international oil prices surged. As of 7:50 p.m. on the 12th (local time), West Texas Intermediate (WTI) futures on the New York Mercantile Exchange were at $105.29 per barrel, up 9.04% from the previous session.