KOSPI Plunges 4%, Falls Below 5,050 Level
As geopolitical tensions from the Middle East escalated and the won/dollar exchange rate soared to a 17-year high, the KOSPI fell over 4% on the 31st, dropping below the 5,050 level. This marks the fourth consecutive trading day of decline since the 26th. The index opened at 5,143.75, down 133.55 points (2.53%) from the previous session, and briefly threatened the 5,000 mark in early trading. While it fluctuated, even recovering to the 5,200 level intraday, the losses widened again in late trading. As of 3:30 PM KST, the won/dollar exchange rate in the Seoul foreign exchange market was 1,530.1 won, up 14.4 won from the previous day.
On the Korea Composite Stock Price Index (KOSPI) market, foreign investors net sold 3.8473 trillion won worth of stocks, dragging down the index. This marks nine consecutive trading days of net selling by foreign investors. Retail investors net bought 2.4403 trillion won and institutional investors net bought 1.0249 trillion won, supporting the index's lower bound.
The three major indices on the New York Stock Exchange showed mixed performance overnight. The May futures contract for West Texas Intermediate (WTI) crude oil closed at $102.88 per barrel, up 3.25% and marking its highest level since July 2022.
The KOSDAQ index also closed lower, down 54.66 points (4.94%) at 1,052.39. While the decline narrowed to just shy of the 1,100 level intraday, losses expanded again in late trading. On the KOSDAQ market, institutional investors net sold 68.6 billion won, while retail investors and foreign investors net bought 49.8 billion won and 112.9 billion won, respectively.
Lee Kyung-min, a researcher at Daishin Securities, stated, "While the possibility of war ending is positive for the stock market, there is also concern that new risks may form as war costs are shifted to Asia." He explained, "If the U.S. withdraws without the situation in the Strait of Hormuz being resolved, Iran's plan to control the strait and collect tolls could burden Asian regions that rely heavily on Gulf energy supplies."
Among individual stocks, semiconductor companies saw significant declines. Samsung Electronics fell 5.16% to below 160,000 won, and SK Hynix dropped 7.56% to below 800,000 won. Hyundai Motor also decreased by 5.11%. LG Energy Solution fell 3.78%, Hanwha Aerospace down 4.51%, and Samsung Biologics down 1.70%. SamchunDang Pharm, which hit a 52-week high the previous day, plummeted 29.98% to close at its daily lower limit.
On the KOSDAQ, EcoPro fell 4.91%, EcoProBM down 5.55%, and Alteogen down 3.67%. In contrast, Pearl Abyss rose 2.07%, continuing its five-day winning streak. RezenS Medical, which newly listed on the KOSDAQ market today, surpassed three times its initial public offering price in early trading before seeing profit-taking, ultimately closing up 67.73%.