KOSPI pares gains despite hopes for easing Middle East tensions [Afternoon Market Report]

[The Financial News] Volatility in the domestic stock market remains elevated despite expectations that tensions from the war in the Middle East may ease. The Korea Composite Stock Price Index (KOSPI) opened above the 5,600 level but quickly reversed intraday and gave up much of its early gains. As of 1:45 p.m. on the 24th, the KOSPI was trading at 5,530.54, up 124.79 points (2.31%) from the previous session. The index started the day at 5,638.20, up 4.3% from the prior close, briefly traded above 5,600 in early dealings, then fell to as low as 5,395.17 in the morning before fluctuating around the 5,500 level.
In the Stock Market Division of the Korea Exchange, retail investors and institutions are net buyers of 807.2 billion won and 192.2 billion won, respectively. Foreign investors are showing net selling of 1.2414 trillion won.
By sector, food, beverage and tobacco (3.49%), pharmaceuticals (3.35%), and insurance (3.35%) are on the rise, while construction (-5.45%), non-metallic minerals (-0.98%), and securities (-0.64%) are declining.
Among large-cap stocks by market capitalization, Samsung Electronics (1.48%), SK hynix (5.25%), Hyundai Motor Company (1.44%), and LG Energy Solution (9.41%) are strong. Doosan Enerbility (-0.99%) and Kia (-2.78%) are weaker.
Overnight, United States of America President Donald Trump announced a five-day postponement of strikes on power plant infrastructure in the Islamic Republic of Iran, yet the domestic stock market still appears constrained by geopolitical risks.
Kang Jinhyuk, a researcher at Shinhan Securities, said, "Foreign investors continue to post net selling in both the cash and futures markets, but the intensity of the sell-off appears to have eased," adding, "Secondary battery stocks are showing strength as the energy storage system (ESS) industry comes into focus amid the United States of America's de-risking from China in its value chain and the ongoing energy crisis."
At the same time, the KOSDAQ Index was trading at 1,118.13, up 21.24 points (1.94%) from the previous session. The index opened at 1,134.16, up 37.27 points (3.40%) from the prior close, dropped to as low as 1,094.67 at one point during the session, and is now trading around the 1,110 level.
In the KOSDAQ market, retail investors are net sellers of 103 billion won, while institutions have a small net selling position of 300 million won. Foreign investors have bought a net 134.9 billion won.

nodelay@fnnews.com Park Ji-yeon Reporter