The domestic stock market is showing weakness in early trading due to heightened geopolitical tensions in the Middle East and surging international oil prices and U.S. Treasury yields. As foreign and institutional investors continue to sell, the KOSPI index has fallen to the 7000 level, prompting efforts to defend the index.
According to the Korea Exchange, as of 9:13 a.m. on September 9, the KOSPI was trading at 7008.00, down 43.64 points (0.62%) from the previous trading day. The index opened at 7038.85, down 12.79 points (0.18%), and has been fluctuating since the opening, with losses increasing.
Among investors, individuals have made a net purchase of 498.5 billion won, while foreign and institutional investors have sold a net 95.7 billion won and 442.2 billion won, respectively.
Large-cap stocks are experiencing mixed movements. While SK Hynix (up 0.97%) and KB Financial (up 0.23%) are gaining, Samsung Electronics (down 0.74%), Samsung Electro-Mechanics (down 1.42%), LG Energy Solution (down 1.89%), Hyundai Motor (down 0.90%), Samsung Biologics (down 1.10%), and Samsung C&T (down 1.20%) are declining.
The KOSDAQ index is also on a downward trend. At the same time, the KOSDAQ index is at 817.68, down 12.69 points (1.53%) from the previous trading day, having opened at 825.06, down 5.31 points (0.64%).
In the KOSDAQ market, individuals have made a net purchase of 219.5 billion won, helping to mitigate the index's decline. In contrast, foreign and institutional investors have sold a net 171.1 billion won and 39.9 billion won, respectively.
Among the top KOSDAQ stocks, Alteogen (down 2.50%), EcoPro (down 1.96%), EcoPro BM (down 0.87%), JUSUNG Engineering (down 3.29%), Wonik IPS (down 2.66%), Rino Technology (down 0.57%), and Simtec (down 3.09%) are experiencing losses. Meanwhile, Rainbow Robotics (up 1.12%), IOTech (up 0.11%), and Roboteers (up 4.84%) are seeing gains.
Earlier on September 9 (local time), the Dow Jones Industrial Average fell 0.77% on the New York Stock Exchange, while the S&P 500 and Nasdaq Composite indices dropped 0.48% and 0.64%, respectively.
The increase in risk aversion is attributed to escalating tensions in the Middle East. The U.S. Central Command (CENTCOM) reported the destruction of five Iranian oil tankers, while Iran claimed to have retaliated by attacking a U.S. military base in Jordan with ballistic missiles.
International oil prices have surged as well. Brent crude for November delivery closed at $101.21 per barrel, up $3.29 (3.36%), marking the first time Brent prices have exceeded $100 since July 23.
The rise in oil prices has reignited inflation concerns, increasing scrutiny of the U.S. Federal Reserve's monetary policy. U.S. Treasury yields have also risen, with the 10-year Treasury yield surpassing 4.85% during trading, reaching its highest level since November 2023.
In contrast, semiconductor stocks continue to perform well. The Philadelphia Semiconductor Index rose 0.37%, marking its fifth consecutive day of gains, while SK Hynix's American Depositary Receipts (ADRs) surged 7.05%.
Market analysts predict that the risks stemming from the Middle East and rising oil prices could lead to increased short-term volatility, suggesting that the domestic stock market may give back some of its previous gains. The simultaneous expiration of futures and options, along with concerns ahead of the August Consumer Price Index (CPI), could further threaten the 7000 level.
Han Ji-young, a researcher at Kiwoom Securities, stated, "The U.S. stock market's weakness due to rising oil prices and long-term U.S. Treasury yields, combined with volatility in the current futures and options market, is likely to result in a partial retraction of the previous day's gains. There is a possibility that the KOSPI could fall below 7000 points again amid heightened volatility from the simultaneous expiration of futures and options and pre-CPI caution."
* This article has been translated by AI.
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