"A 2% Drop Now Looks Flat"... KOSPI Holds in the 7,870 Range Amid Foreigners' Won 2 Trillion Sell-Off [Morning Market Update]

[Financial News] The KOSPI is trading weakly amid developments in ceasefire talks between the United States and Iran, as well as growing inflation concerns.
As of 10:40 a.m. on the 10th, the KOSPI was trading at 7,878.99, down 217.94 points, or 2.69%, from the previous session. The index opened at 7,899.77, down 2.43% from the previous close.
In the main board market, individual investors were net buyers of 197.27 billion won. Foreign investors and institutions were net sellers of 202.55 billion won and 15.7 billion won, respectively.
Most large-cap stocks were lower. Samsung Electronics (-4.66%), SK hynix (-4.47%), SK Square (-4.18%), Samsung Electro-Mechanics (-4.06%), and Hyundai Motor Company (-2.97%) were among the decliners. HD Hyundai Heavy Industries (6.21%), KB Financial Group (0.06%), and Hanwha Aerospace (1.57%) were higher.
By sector, construction (4.72%), real estate (2.98%), metals (1.46%), textiles and apparel (1.24%), and medical and precision equipment (1.25%) were strong. Insurance (-4.72%), IT services (-4.58%), electrical and electronics (-3.87%), and manufacturing (-2.98%) were falling.
The weakness appears to stem from heightened military tensions between the United States and Iran. On the 9th (local time), CENTCOM said on X (formerly Twitter), "At the direction of the commander in chief, U.S. President Donald Trump, we launched a self-defense strike against Iran." The command said the strike was in response to an incident on the 8th (local time), when an AH-64 Apache attack helicopter from the U.S. Army was shot down after coming under Iranian drone attack while patrolling over the Strait of Hormuz.
Investors are also watching the upcoming release of the United States Consumer Price Index (CPI) for May. Market participants believe that the Federal Reserve's policy direction could change depending on how much the surge in global oil prices after the Middle East crisis is reflected in inflation.
Han Ji-young, an analyst at KIWOOM Securities Co., Ltd., said, "Domestic markets are expected to remain volatile today, as investors lock in short-term profits after yesterday's more than 8% surge and stay cautious ahead of the May CPI release." She added, "After plunging more than 8% on the 8th, the KOSPI rebounded by more than 8% the following day, creating sharp swings that are adding to market fatigue."
At the same time, the KOSDAQ (Korea Securities Dealers Automated Quotations) was trading at 977.98, up 10.17 points, or 1.05%, from the previous session. The index opened at 958.58, down 9.23 points, or 0.95%, from the previous close, before turning higher.
In the KOSDAQ market, individual investors and institutions were net buyers of 220.5 billion won and 50.7 billion won, respectively. Foreign investors, meanwhile, were net sellers of 267.4 billion won.

yimsh0214@fnnews.com Lim Sang-hyeok Reporter