Despite the major setback of the U.S. bombing of Iran's nuclear facilities, the Korea Composite Stock Price Index (KOSPI) managed to maintain the 3000 level. Even with a joint sell-off by foreign investors and institutions, individual investors engaged in a net purchase of 1.5 trillion won, defending against a drop in the index. As customer deposit funds surpassed 63 trillion won, expectations for the return of retail investors increased.
On the 23rd, the KOSPI index closed at 3014.47, down 7.37 points (0.24%) from the previous trading day. The KOSPI index closed at 3021.84 on the 20th, recovering the 3000 level for the first time in 3 years and 6 months since December 2021. It has maintained 'the three thousand mark' for two consecutive trading days based on the closing price.
The KOSPI index opened below the 3000 level that day. Following the U.S. direct attack on Iran's nuclear facilities over the weekend and Iran's counteraction with a resolution to block the Strait of Hormuz, market uncertainty increased. In particular, during a joint sell-off by foreign investors and institutions, the KOSPI index fell to 2971.36 at one point.
The buying by individual investors defended against the decline in the index. Individuals net purchased 1.5098 trillion won that day. This marks the first net purchase of over 1 trillion won by individuals since April 7. However, both institutions and foreigners sold a net 969.1 billion won and 472.3 billion won respectively, resulting in limited upward movement in the index.
Lee Jae-won, a researcher at Shinhan Investment Corp., noted, "On this day, individual investors made a large-scale net purchase of over 1.5 trillion won in KOSPI stocks alone," adding, "As customer deposit funds exceeded the highest level since 2023, at 63.6 trillion won, expectations for the return of retail investors are also increasing."
The absence of further spread of geopolitical anxiety also had a positive influence on maintaining the 3000 level. Oil prices initially rose by 3% to the high $75 range based on West Texas Intermediate (WTI) crude but slowed to the mid-$74 range, while U.S. stock market futures experienced a decline of around 0.3%.
Most of the stocks of the top market capitalization companies in the KOSPI showed a decline. This was largely due to sell-offs by institutions and foreigners in sectors such as semiconductors, automobiles, secondary batteries, and biotechnology. Institutions net sold about 400 billion won worth in the electric and electronics sectors alone.
Particularly, news that the U.S. government is pushing for restrictions on the import of U.S. equipment into factories operated by domestic semiconductor corporations in China weakened investor sentiment across the semiconductor sector, impacting giants like Samsung Electronics (-2.52%) and DB HiTek (-1.49%). Only SK hynix turned to an increase during the day.
In addition, stocks of Samsung Biologics, LG Energy Solution, Hanwha Aerospace, and Hyundai Motor also fell. Among the top 10 stocks in terms of market capitalization in the KOSPI, only SK hynix, along with Naver (NAVER), Doosan Enerbility, and KB Financial, recorded an increase in stock price.
Lee Kyung-min, a researcher at DAISHIN SECURITIES, analyzed that, "As a result of foreign investors' basket selling due to a risk-averse sentiment, the stock prices of automobiles, secondary batteries, and biotechnology stocks all fell. However, expectations for benefits from government artificial intelligence (AI) policies and the revitalization of global nuclear power remain intact."
With rising oil prices and shipping costs due to instability in the Middle East, energy-related stocks such as S-Oil and Korea Oil, along with shipping stocks like Korea Line Corporation and Heung-A Shipping, showed strength. The stock price of Kakao Pay also rose by more than 15% on expectations for the institutionalization of the won stablecoin.
The KOSDAQ index closed at 784.79, down 6.74 points (0.85%) from the previous trading day. The KOSDAQ index also opened at 779.67, down 11.86 points (1.50%) from the previous session, but reduced its decline. Despite net selling from institutions (69.9 billion won) and foreigners (9.7 billion won), individuals net purchased 125.5 billion won to defend the index.
By stock, most of the top market capitalization stocks in the KOSDAQ closed lower. The stocks of Alteogen and ECOPRO BM, ranked 1st and 2nd by market capitalization, both fell by over 2%, while the stock of HLB dropped by more than 4%. However, the stock prices of Rainbow Robotics and PharmaResearch increased.
Meanwhile, in the Seoul foreign exchange market, as of 3:37 p.m., the exchange rate of the Korean won against the U.S. dollar rose by 9.90 won (0.72%) to record 1383.90 won. It began at 1375.0 won, rising nearly 20 won to 1385.2 won at one point during the morning but then reduced its gains.