KOSPI slips from record high amid US-Iran uncertainty

KOSPI is displayed in the dealing room of Hana Bank in Seoul, Wednesday. The benchmark index closed at 9,052.42, down 0.13 percent from the previous session. Yonhap

The KOSPI ended lower Friday after briefly topping 9,300 to set a fresh all-time high, as uncertainty over U.S.-Iran talks aimed at ending the conflict appeared to weigh on investor sentiment.

According to the Korea Exchange, the benchmark index closed at 9,052.42, down 0.13 percent from the previous session, after rising as high as 9,385.59 in intraday trading.

However, sentiment weakened in the afternoon after the White House announced that Vice President JD Vance’s planned visit to Switzerland for follow-up working-level talks on nuclear negotiations with Iran had been postponed.

Profit-taking pressure and fatigue from the market’s rapid semiconductor-led rally also contributed to the day’s decline, analysts said.

Volatility was high, with the gap between KOSPI’s intraday high and low exceeding 553 points. Foreign and institutional investors sold a net 388.4 billion won ($254.5 million) and 1.23 trillion won worth of shares, respectively. Retail investors, meanwhile, stepped in to provide support, net buying 1.68 trillion won.

“The domestic stock market opened higher on the day, supported by a more than 6 percent surge in the U.S. Philadelphia Semiconductor Index and a more than 3 percent gain in KOSPI 200 overnight futures,” said Han Ji-young, an analyst at Kiwoom Securities.

“However, the market later came under pressure as uncertainty over U.S.-Iran negotiations grew and side effects emerged from the concentration of gains in semiconductors and a small number of sectors,” Han added.

While strength in the U.S. semiconductor sector boosted investor sentiment, the fortunes of Korea’s semiconductor giants diverged.

Samsung Electronics fell 2.34 percent to 354,000 won, despite climbing to an all-time high of 374,500 won during morning trading. By contrast, SK hynix rose 2.94 percent to 2,764,000 won, also hitting an all-time intraday high of 2,891,000 won.

The secondary Kosdaq fell sharply, closing at 966.59, down 3.43 percent. The exchange rate stood at 1,527 won per dollar, with the Korean currency depreciating by 0.1 won.

As KOSPI surged above 9,000, concerns grew over market concentration in a handful of major stocks.

Kiwoom Securities noted that, based on 12-month forward operating profit estimates, semiconductors have accounted for about 97 percent of the increase in KOSPI earnings since the start of the year.

“We must humbly listen to the criticism that the KOSPI index is becoming a number that brings a sense of deprivation rather than joy,” said Rep. Jeong Jeom-sig, floor leader of the main opposition People Power Party, noting that only 109 stocks rose, while 791 fell.

“The Lee Jae Myung administration should not become intoxicated by the KOSPI’s headline level, but should fully shift its economic policy stance to improve the structural fundamentals and competitiveness of our economy.”