KOSPI Falls Over 2% Below 5,800 Mark

The KOSPI index closed at 5,763.22 on the 19th, down 161.81 points (2.73%) from the previous trading day, falling below the 5,800 mark. The KOSDAQ index also finished trading down 20.90 points (1.79%) at 1,143.48.

In the Seoul foreign exchange market, the won/dollar exchange rate closed at 1,501.0 won, up 17.9 won from the previous day. The won/dollar rate recorded its highest level on a weekly closing basis since March 10, 2009 (1,511.5 won). Soaring international oil prices due to geopolitical risks in the Middle East and hawkish remarks by U.S. Federal Reserve Chairman Jerome Powell influenced the rise in the exchange rate. News emerged that the U.S. and Israel had bombed a gas field in South Pars, Iran, and Fed Chair Jerome Powell stated at a press conference following the FOMC meeting that he did not rule out the possibility of the next move being an interest rate hike.

On the stock exchange, individual investors were net buyers of 2.4123 trillion won, while foreigners and institutions were net sellers of 1.8741 trillion won and 665.8 billion won, respectively. Foreigners also showed a selling dominance of approximately 1.4 trillion won in the KOSPI200 futures market. Top market capitalization stocks such as Samsung Electronics (-3.84%), SK Hynix (-4.07%), and Hyundai Motor (-4.22%) also fell across the board.

Lee Kyung-min, a researcher at Daishin Securities, analyzed that the domestic stock market is reflecting geopolitical risks and inflation concerns, moving in tandem with oil and foreign exchange rate trends. External headwinds, including escalating geopolitical crises and the possibility of interest rate hikes, dragged down the index.