On the 11th, the KOSPI opened slightly lower and fell to the 6,240 level. The move is seen as reflecting overnight weakness in U.S. stocks amid concerns about stalled U.S.-Iran talks. The KOSDAQ, which had been rallying sharply recently, also opened lower on the day.
The KOSPI opened at 6,240.06, down 59.60 points (0.95%) from the previous session. The early session is also maintaining a weak trend.
In the stock market, foreigners are net buying 103.8 billion won. Individuals, by contrast, are net selling 44.8 billion won. Institutions are also net selling 58.3 billion won.
Most top market-cap stocks are weaker. Samsung Electronics(005930) and SK hynix are down 0.22% and 1.27%, respectively. In contrast, LG Energy Solution(373220) and Samsung Biologics are up 0.14% and 0.45%, respectively.
Overnight, New York stocks ended slightly lower as talks between the United States and Iran over reopening the Strait of Hormuz failed to gain speed. On the 10th (local time), the Dow Jones Industrial Average finished at 53,975.98, down 60.95 points (0.11%) from the previous session. The Standard & Poor's (S&P) 500 fell 4.53 points (0.06%) to 7,753.11, and the tech-heavy Nasdaq closed at 26,605.36, down 85.26 points (0.32%).
As foreign media reported that Iran is refusing direct talks with the United States while putting forward several conditions, market caution grew over the two countries' negotiations to reopen the Strait of Hormuz.
Major tech stocks were also weak. Intel fell 4.06% after saying it would launch its first large paid-in capital increase since listing to invest in artificial intelligence (AI) semiconductors. The Philadelphia Semiconductor Index also fell 2.94%, and SK hynix American depositary receipts (ADR) dropped 1.90%.
Han Ji-young, a Kiwoom Securities researcher, said, "The domestic stock market will likely see a rotation among sectors as short-term profit-taking in some names is triggered by higher oil prices and interest rates stemming from the U.S.-Iran stalemate and by a breather in U.S. stocks."
The KOSDAQ, which had shown a stronger uptrend than the KOSPI recently, is also taking a breather on the day. The KOSDAQ index opened at 848.59, down 5.88 points (0.69%) from the previous session. As gains had been strong enough to trigger a buy-sidecar through the previous day, early-session profit-taking appears to be emerging.
Most top market-cap stocks are weak. Alteogen(196170) is down 4.01%, and EcoPro BM is down 2.07%. In contrast, PharmaResearch(214450) and SIMMTECH are up 2.56% and 1.81%, respectively.
One researcher said, "While rebounds in small and mid-caps on the KOSDAQ could continue this week, attention should be paid to the KOSPI's potential upside drivers waiting in the wings, such as U.S. tech earnings and expectations for shareholder returns at domestic semiconductor names," adding, "Assuming the recovery momentum remains intact, this is a time to employ a barbell strategy rather than switching over to the KOSDAQ."