KOSPI Holds Around 5,800 Despite Breakdown in Talks [Financial News Afternoon Market Report]

[Financial News] Individual investors are helping to prevent a sharp plunge in the Korea Composite Stock Price Index (KOSPI Index), even after peace talks between the United States of America (US) and the Islamic Republic of Iran collapsed. Gains in major blue chips such as SK hynix ahead of earnings announcements limited the KOSPI Index decline to around 1%. According to the Korea Exchange (KRX) on the 13th, as of 2:00 p.m. the KOSPI Index was trading at 5,802.50, down 56.37 points (0.96%) from the previous session. The index opened at 5,737.28, down 2.08% from the previous close, but gradually pared its losses.
In the main board market, individual investors bought about 870 billion won worth of shares, while foreigners and institutions showed net selling of 720.7 billion won and 506.6 billion won, respectively.
By sector, paper and wood rose 4.22%, medical and precision instruments gained 1.92%, and metals climbed 1.43%. In contrast, electricity and gas fell 3.05%, retail dropped 2.73%, and textiles and apparel declined 2.42%.
Among large-cap stocks by market capitalization, Samsung Electronics slipped 1.94%, Hyundai Motor lost 2.25%, and LG Energy Solution fell 2.67%. On the other hand, SK hynix advanced 0.68%, Hanwha Aerospace added 2.26%, and SK Square gained 1.76%.
The United States of America (US) and the Islamic Republic of Iran held their first round of talks on the 11th following a cease-fire, but the negotiations collapsed as they failed to narrow differences over issues such as Iran’s abandonment of its nuclear development program and control of the Strait of Hormuz. US Vice President J. D. Vance said immediately after the talks ended, "We did not reach an agreement." President Donald Trump raised tensions further by signaling a blockade of the Strait of Hormuz.
The domestic stock market is seeing bargain hunting led by individual investors, driven by expectations that the negotiation phase between the two countries will continue.
Kang Jinhyuk, a researcher at Shinhan Securities, said, "Despite the share price decline of Samsung Electronics, SK hynix is trending higher on expectations ahead of next week’s earnings announcement and progress in preparations for standardizing High Bandwidth Flash (HBF)."
At the same time, the Korea Securities Dealers Automated Quotations (KOSDAQ) was trading at 1,099.57, up 5.94 points (0.54%) from the previous session. The index opened at 1,076.85, down 1.53% from the previous close, but turned higher during the session.
In the KOSDAQ market, individual investors showed net buying of 229.3 billion won, while foreigners and institutions sold 170.3 billion won and 47.6 billion won worth of shares, respectively.


nodelay@fnnews.com Park Ji-yeon Reporter