The KOSPI index, which opened higher on the 3rd, swung sharply intraday before closing slightly higher. With domestic and overseas macroeconomic conditions unstable, appetite for risk assets has fallen sharply. In particular, reports that Iran attacked a U.S. military base in Kuwait prompted some panic selling.
The KOSPI ended at 6,579.48, up 16.76 points (0.26%) from the previous session. The index opened above 1% higher around 6,650 points, but its gains soon narrowed. Samsung Electronics and SK hynix continued buybacks again, but foreigners and institutions sold in tandem.
Around 2:20 p.m., the index suddenly plunged to as low as 6,440 points. The drop followed reports that Iran attacked a U.S. military base in Kuwait amid ongoing military clashes between the United States and Iran over passage through the Strait of Hormuz. The index soon pared losses and turned higher again.
In the Korea Exchange main board, foreigners, institutions, and individuals all posted net selling. Only other corporations recorded net buying of 1.6 trillion won.
The KOSDAQ index, which opened higher, closed lower. The KOSDAQ fell 13.77 points (1.71%) to end at 790.21, the lowest in a month. Right after Iran attacked a U.S. military base, the KOSDAQ slid to the 780 level, then only partially trimmed losses.
Yields on U.S. Government Bonds, which had surged recently, fell somewhat, but investor sentiment has not recovered much. As concerns grow that high rates could persist, inflows into the stock market have slowed sharply. With tensions between the United States and Iran continuing, oil prices have jumped, adding to unease from geopolitical risks.
Electrical and electronics shares, including Samsung Electronics and SK hynix, were weak, but financials such as banks and insurers, which are expected to benefit from rising rates, gained. U.S. President Donald Trump mentioned Korea in connection with the Alaska LNG project, and shipbuilding and steel stocks were strong.
KB Securities jumped more than 5%, and HD Hyundai Heavy Industries and POSCO Holdings also rose more than 3%. On the KOSDAQ market, biotech shares including Alteogen(196170) and electrical and electronics shares mostly fell.