The KOSPI index dropped nearly 4% as foreign and institutional investors sold off shares, pushing the index below the 6600 mark. The decline was influenced by escalating military tensions between the U.S. and Iran, which caused a surge in international oil prices, alongside rising government bond yields in major economies, leading to increased risk aversion.
On September 2, the KOSPI closed at 6562.72, down 273.08 points (3.99%) from the previous trading day.
The index opened at 6625.47, down 210.33 points (3.08%), and continued to decline, briefly falling below 6600 during the session.
In the securities market, foreign and institutional investors sold a net 24.238 trillion won and 24.419 trillion won, respectively. Meanwhile, individual investors bought a net 31.842 trillion won, attempting to capitalize on lower prices, but their efforts were insufficient to counter the selling pressure from foreign and institutional investors.
The primary factors weighing on the domestic market were the rise in international oil prices and government bond yields. As military conflicts between the U.S. and Iran intensified, international oil prices surged, with WTI futures surpassing $90 and Brent crude futures reaching $95.
The spike in oil prices reignited inflation concerns, leading to an increase in government bond yields. The yield on the U.S. 10-year Treasury note exceeded 4.8%, while Japanese government bond yields also rose above 3%, dampening investor sentiment towards riskier assets.
Most of the top market capitalization stocks showed weakness. Samsung Electronics fell 4.02%, SK Hynix dropped 4.73%, SK Square declined 2.52%, Samsung Electro-Mechanics decreased 2.10%, LG Energy Solution fell 5.31%, Hyundai Motor dropped 5.62%, Samsung Biologics decreased 1.25%, Samsung C&T fell 4.48%, and KB Financial dropped 1.23%.
The KOSDAQ index closed at 803.98, down 17.27 points (2.10%) from the previous trading day.
In the KOSDAQ market, institutions sold a net 252.4 billion won, while individuals and foreigners bought a net 175.1 billion won and 83.4 billion won, respectively.
Among the top market capitalization stocks, Alteogen fell 0.83%, Ecopro dropped 5.96%, Ecopro BM declined 7.06%, Rainbow Robotics decreased 2.89%, Wonik IPS fell 0.27%, and Rino Industrial dropped 1.68%. Conversely, JUSUNG Engineering rose 0.40%, and EoTechnics increased 2.03%.
Lee Kyung-min, a researcher at Daishin Securities, stated, "The domestic market showed weakness as risk aversion increased due to rising government bond yields and international oil prices. The simultaneous selling by foreign and institutional investors caused the KOSPI to fall below the 6600 mark." He added, "The escalation of military conflict between the U.S. and Iran significantly drove up international oil prices, reigniting inflation concerns, and the rise in U.S. 10-year Treasury yields above 4.8% weakened investor sentiment. Although there had been support for the index from recent inflows of corporate buying centered around Samsung Electronics and SK Hynix, the macroeconomic pressures were too great to offset the selling by foreign and institutional investors."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.