KOSPI ends slightly higher as Middle East worries weigh

The KOSPI and Kosdaq indexes are displayed in the dealing room of Hana Bank in Seoul, Thursday. The benchmark KOSPI closed at 7,291.91, up 0.62 percent from the previous session, while the secondary Kosdaq closed at 794.00, up 1.15 percent. Yonhap

The benchmark KOSPI ended at the 7,200 level after a choppy session Thursday, opening higher on bargain-hunting in semiconductor shares before paring gains amid continued uncertainty in the Middle East.

According to the Korea Exchange, the KOSPI closed at 7,291.91, up 0.62 percent from the previous session. The index opened 3.31 percent higher at 7,486.64 and extended gains, briefly rising above the 7,500 mark. It later gave up those gains, falling as low as 7,063.76. After fluctuating for much of the session, the index ended slightly higher.

Foreign and institutional investors bought a net 1.29 trillion won ($854.7 million) and 13.75 billion won worth of KOSPI shares, respectively, while retail investors sold a net 1.33 trillion won, limiting the index's gains.

Investor sentiment toward Korean semiconductor stocks improved after U.S. chip shares closed higher on bargain-hunting, helping local names open stronger. However, continued debate over whether the memory cycle had peaked, along with growing profit-taking pressure, led retail investors to sell heavily, erasing much of the market's intraday gains.

SK hynix rose 5.3 percent to close at 2,186,000 won amid expectations surrounding the American depositary receipt on Friday (local time). Samsung Electronics closed at 278,000 won, up 0.18 percent.

Uncertainty related to the Middle East also weighed on the stock market. While at a NATO summit in Turkey, U.S. President Donald Trump said on Wednesday morning (local time) that a memorandum of understanding to end the conflict with Iran had effectively ended. Mixed headlines continued to emerge, with the U.S. military saying it had struck 90 targets in airstrikes against Iran, while some reports said Iran had again reached out to express its willingness to negotiate.

Cosmetics names that had recently been on an uptrend weakened, with APR down 5.19 percent and Kolmar Korea down 8.3 percent.

Defense stocks fell, with Hanwha Aerospace down 8.45 percent, LIG Defense & Aerospace down 2.8 percent and Hyundai Rotem down 5.3 percent. Auto shares were also weaker, with Kia down 7.65 percent and Hyundai Motor down 3.68 percent.

The secondary Kosdaq closed at 794.00, up 1.15 percent from the previous session.

The won-dollar exchange rate closed the daytime session at 1,506.1 won, up 7.6 won from the previous trading day.