A dealer works at the dealing room of Hana Bank headquarters in Seoul, Thursday. KOSPI closed at 8,185.29, down 43.41 points, or 0.53 percent, from the previous session, while Kosdaq ended at 1,104.36, shedding 28.77 points, or 2.54 percent. Yonhap
The benchmark KOSPI dipped Thursday amid renewed U.S.-Iran tensions but held firm above 8,000 after a record-setting two-session rally that pushed the index beyond 8,200.
KOSPI opened 62.97 points, or 0.77 percent, lower at 8,165.73 and finished the session at 8,185.29, down 43.41 points, or 0.53 percent, from the previous trading day.
The index briefly tumbled to an intraday low of 7,841.01 amid aggressive selling by foreign investors of market heavyweights Samsung Electronics and SK hynix before recouping most of its losses on the back of strong retail buying.
Investor sentiment deteriorated as renewed U.S.-Iran tensions overshadowed expectations for a ceasefire breakthrough. Concerns intensified after Iran’s Islamic Revolutionary Guard Corps was reported to have launched attacks on U.S. military bases in Kuwait in response to recent U.S. strikes in southern Iran.
Seo Sang-young, an analyst at Mirae Asset Securities, said Asian stock markets, including Korea, extended losses as investors priced in escalating tensions between Washington and Tehran.
“The latest developments drove international oil prices up nearly 4 percent and sparked a broader risk-off mood marked by a stronger dollar, rising U.S. Treasury yields and declines in U.S. stock futures during after-hours trading,” Seo said. “In Korea, the sell-off was amplified by aggressive foreign selling, particularly in semiconductor shares that had led the market’s recent rally.”
He also identified domestic factors behind the Korean market’s relatively sharp decline.
“Concerns stemming from a minority opinion within the Bank of Korea (BOK) favoring a rate hike, along with higher government bond yields, appear to have added further pressure on the market,” Seo said.
The secondary Kosdaq opened 2.71 points, or 0.24 percent, higher at 1,135.84 but quickly reversed course and ended the session at 1,104.36, shedding 28.77 points, or 2.54 percent, as investors appeared to react more strongly to those domestic developments.
Source: Korea Times News
