On the morning of the 23rd, the KOSPI index was displayed in the dealing room of Hana Bank’s headquarters in Seoul. On this day, the KOSPI retreated to the 2,990 level as tensions in the Middle East escalated due to the U.S. attack on Iran’s nuclear facilities. [Source: Yonhap News]
With Middle Eastern tensions reaching a peak, the domestic stock market was shaken sharply. Concerns over a blockade of the Hormuz Strait, following the U.S. strike on Iran’s nuclear facilities, contributed to the KOSPI’s sharp drop, hitting the 2,970 level early in trading on the 23rd.
As of 9:23 a.m. on the 23rd, the KOSPI index fell to 2,975.29, down 46.55 points (1.54%) from the previous trading day. The KOSPI opened at 2,992.20 and continued to decline, falling below the 3,000 mark. The gain seen on the 20th, when the index recovered ‘3,000’, its highest in three and a half years, reversed sharply in just one day.
On the KOSPI market, foreign and institutional investors sold a net of 222.4 billion won and 137 billion won worth of stocks, respectively, while individual investors bought a net of 399 billion won. In the KOSPI 200 futures market, foreigners were net sellers of 171.5 billion won.
In the Seoul foreign exchange market, the won-dollar exchange rate started at 1,375.0 won, up 9.4 won from the previous session.
The stock market decline was directly influenced by the U.S. military action. Over the weekend, foreign media reported that the U.S. had carried out a precision strike on Iran’s nuclear facilities, escalating military tensions in the Middle East. In response, the Iranian parliament decided to blockade the Hormuz Strait, a critical artery for global oil transportation, raising concerns about energy supply chains.
Additionally, over the weekend, foreign media reported the possibility of the U.S. restricting equipment exports to the Chinese factories of South Korean semiconductor companies, which increased the decline in major domestic semiconductor stocks. Samsung Electronics fell 2.69% compared to the previous trading day, and SK Hynix dropped 2.72%.
Conversely, stocks related to defense, energy, and shipping rose amid the Middle East instability. Defense stocks such as Hanwha Aerospace (0.64%), Poongsan (11.70%), and Hyundai Rotem (0.71%) showed strength, while Korean Petroleum (21.11%), Daesung Energy (19.43%), and SK Gas (7.79%) soared due to the expected increase in international oil prices and logistics costs.
Kakao Pay surged 10.55% amid continued expectations for the introduction of a won-based stablecoin.
At the same time, the KOSDAQ index was down 16.72 points (2.11%) at 774.81, having increased its losses after opening at 779.67.