The KOSPI, which surged the previous day, fell below the 7,800 level intraday under pressure from profit-taking. Selling is expanding, led by large-cap semiconductor stocks, with Samsung Electronics and SK hynix both down in the 5% range.
As of 11:44 a.m., the KOSPI was trading at 7,797.41, down 299.52 points (3.70%) from the previous session. Opening at 7,899.77, the KOSPI widened losses and dropped to as low as 7,769.35 intraday.
In the main board, foreigners are net sellers of more than 2 trillion won. Institutions are also net sellers of 280 billion won. Individuals alone are net buyers of more than 2.5 trillion won, absorbing the supply.
Shares of Samsung Electronics and SK hynix are down 5.43% and 5.78%, respectively. Kakao, which launched its first strike since its founding on the day, is also declining in the 3% range.
Meanwhile, as military clashes between the United States and Iran intensify, defense stocks are strong. LIG Defense&Aerospace (5.79%), Hanwha Systems (4.27%), and Hyundai Rotem (3.76%) are rising. On expectations of earnings growth, department store stocks such as Shinsegae (9.13%) and Lotte Shopping (6.21%) are also climbing.
The resurfacing of Middle East–related geopolitical risk has added to pressure on the market. U.S. Central Command said on the 9th (local time) it carried out a self-defense military operation against Iran. The move was in response to a U.S. military helicopter being shot down by an Iranian drone attack over the Strait of Hormuz earlier.
The U.S. consumer price index (CPI) for May, due out tonight, is also seen as a key variable. If the impact of the recent rise in international oil prices on inflation is confirmed, it could influence the Federal Reserve's monetary policy outlook.
Kang Jin-hyeok, a researcher at Shinhan Investment & Securities, said, "Amid weakness in U.S. semiconductor stocks and escalating U.S.-Iran tensions, profit-taking has concentrated in large-cap semiconductor names such as Samsung Electronics and SK hynix, pushing the KOSPI below the 8,000 level."
At the same time, the KOSDAQ was trading at 962.14, down 5.67 points (0.59%) from the previous session. After opening lower, the KOSDAQ rebounded immediately and held a slight gain but turned lower around 11 a.m. Individuals are net buyers of 220 billion won and institutions 50 billion won, while foreigners are net sellers of 270 billion won.
Large-cap stocks are mixed. Alteogen, EcoPro BM, and EcoPro are falling, while Jusung Engineering, HLB, and Wonik IPS are rising. Semites, which debuted on the KOSDAQ through a special purpose acquisition company (SPAC) merger on the day, is down more than 27%.
The won-dollar exchange rate opened at 1,525 won, up 12.9 won from the previous session.