On the 14th, the KOSPI index opened slightly lower at 6,769.06. The move is seen as stemming from a pullback in risk appetite as tensions between the United States and Iran reignited.

Overnight, the 9% plunge in American depositary receipts (ADR) dragged SK hynix(000660)'s common shares down 3%.

As the KOSPI plunges, the KOSPI index and the stock prices of SK hynix and Samsung Electronics are shown on an electronic board in the Hana Bank dealing room in Jung-gu, Seoul, on the afternoon of the 13th, after the market closes at 6,806.93, down 669.01 points (8.95%) from the previous day's closing price. /Courtesy of News1.

As of 9:06 a.m., the KOSPI index was down 162.62 points, or 2.39%, at 6,644.31 from the previous session. After a lower open, the index attempted an intraday rebound but is widening losses on heavy selling.

Retail investors are net sellers of 513.3 billion won. Foreign investors and institutions are net buyers of 77 billion won and 423.6 billion won, respectively. Among institutions, financial investment, where exchange-traded fund (ETF) flows are tallied, is net buying 196.2 billion won, and pension funds are net buying 127 billion won, leading institutional purchases.

Investor sentiment appears to have deteriorated as U.S.-Iran tensions reignited. U.S. President Donald Trump said he would resume a maritime blockade against Iran and, at the same time, unveiled a plan to levy a 20% fee as protection charges for transiting vessels.

Oil prices and U.S. Government Bonds yields surged. West Texas Intermediate (WTI) August futures are up 9% and trading around $78. The U.S. 10-year Government Bonds yield jumped 1.2% to 4.624%, near the previous high in May.

Concerns about Federal Reserve tightening are also a drag. Christopher Waller, a Federal Reserve governor, said ahead of the consumer price index (CPI) release that "depending on the inflation outcome, we could consider currency policy tightening measures in the near term," signaling a hawkish stance.

Overnight, the three major indexes on Wall Street all closed lower.

Semiconductor stocks are weak. Samsung Electronics(005930) and SK hynix are down 1.96% and 3.52%, respectively. Overnight, SK hynix ADR fell 9% on the Nasdaq to close at $152, slightly above its offer price ($149).

At the same time, the KOSDAQ index was down 18.21 points, or 2.28%, at 781.15 from the previous session. Foreign investors are net sellers of 36.9 billion won, dragging the index lower, while retail investors and institutions are net buyers of 13.7 billion won and 23 billion won, respectively.

On news that Samsung Bioepis is entering subcutaneous (SC) formulation technology, Alteogen(196170) is plunging 11%. Most large-cap stocks by market capitalization are declining.

※ This article has been translated by AI. Share your feedback here.