KOSPI falls as oil prices jump, but retains 7,000
Summary
KOSPI fell Thursday amid rising international oil prices driven by Middle East tensions, but it stayed above 7,000 and closed at 7,033.92. Foreign investors were net sellers, while retail and institutional investors bought shares. The Kosdaq rose, and semiconductor, defense and insurance stocks gained while refining and chemical shares fell.
Key Facts
- The KOSPI closed at 7,033.92, down 0.25 percent from the previous session.
- Foreign investors sold a net 2.48 trillion won worth of shares, while retail and institutional investors bought a net 380 billion won and 433.5 billion won, respectively.
- The Kosdaq rose 0.79 percent to close at 836.92.
- The won-dollar exchange rate closed at 1,339.2 won per dollar, up 3.1 won from the previous session.
- West Texas Intermediate and Brent crude futures climbed above 96 dollars and 100 dollars per barrel, respectively.
KOSPI and Kosdaq are displayed in the dealing room of Hana Bank in Seoul, Thursday. The benchmark KOSPI closed at 7,033.92, down 0.25 percent from the previous session, while the secondary Kosdaq closed at 836.92, down 0.79 percent. Yonhap
The KOSPI edged lower Thursday amid a surge in international oil prices triggered by geopolitical tensions in the Middle East, but managed to close above the 7,000 mark.
The benchmark index closed at 7,033.92, down 0.25 percent from the previous session. The index opened 0.18 percent lower and rose as high as 7,072.79 before falling to 6,898.45. It then fluctuated around the 7,000 level as institutional selling pressure eased.
Foreign investors sold a net 2.48 trillion won ($1.85 billion) worth of shares, while retail and institutional investors bought a net 380 billion won and 433.5 billion won, respectively.
SK hynix fell 0.16 percent to close at 1.853 million won, while Samsung Electronics lost 0.19 percent to finish at 269,000 won.
The secondary Kosdaq, meanwhile, rose 0.79 percent to close at 836.92.
Despite strength in U.S. semiconductor shares after Meta unveiled its agentic AI, Muse, external risks continued to weigh on the stock market.
With little prospect of negotiations between Iran and the U.S. resuming in the near term, international oil prices continued to rise. West Texas Intermediate and Brent crude futures climbed above $96 and $100 per barrel, respectively.
The U.S. Treasury's announcement of a $6 billion buyback of 10- to 20-year government bonds also fell short of market expectations and instead added upward pressure on Treasury yields. Yields on two-year, 10-year and 30-year U.S. Treasuries stood at around 4.43 percent, 4.85 percent and 5.30 percent, respectively, continuing to weigh on equities.
Thursday's "quadruple witching," when stock index and individual stock futures and options expire simultaneously, also added to market volatility.
Still, semiconductor equipment and materials stocks were strong, with Jusung Engineering climbing 7.02 percent and TSE gaining 14.15 percent.
Defense stocks gained on bargain hunting, with Hanwha Aerospace up 1.9 percent and LIG Defense & Aerospace rising 1.49 percent.
Insurance stocks also advanced on sector rotation, led by Hanwha Life Insurance, up 4.73 percent, and Samsung Life Insurance, up 1.98 percent.
By contrast, refining and chemical stocks fell on profit-taking. S-Oil dropped 6.21 percent and GS declined 3.44 percent.
The won-dollar exchange rate closed at 1,339.2 won per dollar, up 3.1 won from the previous session.
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