The KOSPI index surged to 7,170 during trading but ultimately closed below 7,000, erasing its gains in the afternoon session. The index initially showed strong performance, driven by semiconductor and nuclear power stocks, but faced pressure from rising international oil prices and trade uncertainties, resulting in a 'strong start, weak finish' trend.
According to the Korea Exchange, the KOSPI closed at 6,954.52, down 40.87 points (0.58%) from the previous trading day. It briefly exceeded 7,100, reaching a high of 7,170.09, but quickly lost ground in the afternoon, ultimately turning negative. The difference between the intraday high and the closing price was over 215 points. In the securities market, foreign and institutional investors recorded net purchases of 644.9 billion won and 649.6 billion won, respectively, while individual investors sold off 3.0534 trillion won.
Large-cap semiconductor stocks, which led the index's morning rise, also lost momentum in the latter part of the session. Samsung Electronics peaked at 279,000 won but closed down 0.19% at 269,500 won. SK Hynix rose to 1,889,000 won during the day but ended up gaining only 0.56%, closing at 1,793,000 won.
Most of the top market capitalization stocks showed weakness. Samsung Electro-Mechanics fell 5.78%, LG Energy Solution dropped 3.86%, Hyundai Motor declined 2.04%, Samsung Biologics decreased 1.77%, KB Financial fell 1.25%, and Samsung C&T was down 0.52%.
The KOSDAQ index also closed lower, down 10.31 points (1.25%) at 811.88. While individual and foreign investors made net purchases of 149 billion won and 61.8 billion won, respectively, institutions sold off 217.8 billion won.
Lee Kyung-min, a researcher at Daishin Securities, noted, "Foreign and institutional investors have continued net buying for four consecutive trading days, supporting the index's rise, but some gains were given back in the afternoon. The ongoing conflict between the U.S. and Iran, coupled with news of attacks on Saudi Arabian oil facilities, has sustained upward pressure on international oil prices, weakening the appetite for risk assets."
He added, "The deepening trade conflict between the U.S. and Canada also poses a burden. With the U.S. inflation data set to be released this week, caution remains, and the persistent strength of the yen has raised concerns about the unwinding of yen carry trades."
* This article has been translated by AI.
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