The KOSPI is falling more than 1% amid escalating tensions in the Middle East.
As of 9:38 a.m. on the 2nd, the KOSPI recorded 2,562.64, down 30.63 points (1.18%) from the previous trading day.
The decline in the KOSPI is interpreted as a result of increased uncertainty stemming from the Middle East. On the 1st (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average, centered on blue-chip stocks, closed at 42,156.97, down 173.18 points (0.41%) from the previous trading day. The S&P 500, focused on large-cap stocks, fell 53.73 points (0.93%) to 5,708.75, and the Nasdaq, centered on tech stocks, dropped 278.81 points (1.53%) to 17,910.36.
The market was dragged down by concerns that Iran’s direct strike on Israel could escalate into a full-scale war. Iran fired about 180 ballistic missiles targeting Israel. This comes just over five months after missile and drone attacks on the Israeli mainland on April 13-14 of this year.
In particular, foreign investors and institutions are jointly net selling, putting pressure on the KOSPI. By investor type, foreigners and institutions net sold 174.8 billion KRW and 185.8 billion KRW, respectively. Meanwhile, individuals net bought 354.4 billion KRW.
By sector, most are declining, with food and beverages down 2.34%. Additionally, electricity and gas, insurance, machinery, transportation and warehousing, construction, and pharmaceuticals are all down more than 1%. On the other hand, textiles and apparel rose 1.41%.
Among the top market capitalization stocks, Samsung Electronics traded at 60,800 KRW, down 700 KRW (1.14%) from the previous trading day. Hyundai Motor fell 2.05%, and SK Hynix, Samsung Biologics, Celltrion, POSCO Holdings, Samsung SDI, and Samsung C&T all dropped more than 1%. Conversely, Shinhan Financial Group rose 1.26%.
The KOSDAQ recorded 755.23, down 8.65 points (1.13%).
By investor type, individuals and institutions net bought 47.8 billion KRW and 2.8 billion KRW, respectively. Foreigners net sold 44.4 billion KRW.
By sector, non-metallic minerals fell 2.06%, while machinery equipment, construction, metals, distribution, publishing and media, and chemicals all dropped more than 1%. Conversely, transportation rose 3.08%.
Among the top market capitalization stocks, EcoPro BM traded at 186,600 KRW, up 2,100 KRW (1.14%) from the previous trading day. EcoPro and Hugel are both rising more than 2%, and Classys and HPSP are up more than 1%. On the other hand, Samchundang Pharmaceuticals fell 3.08%, and Silicon투 and Rainbow Robotics dropped more than 2%. Additionally, HLB, Rino Industries, and Celltrion Pharm all declined more than 1%.
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