KOSPI Composite Index Falls Below 6,600 on 'Middle East Risks'; Samsung Electronics and SK hynix Tumble 4%[fn Market Close]

[Financial News] The KOSPI Composite Index fell below 6,600 as international oil prices and U.S. Treasury yields surged amid escalating risks in the Middle East.
On the 2nd, the KOSPI Composite Index closed at 6,562.72, down 273.08 points, or 3.99%, from the previous trading day. This marked the first time in 10 trading days that the index had closed below the 6,600 level.
The KOSPI Composite Index opened at 6,625.47, down 210.33 points, or 3.08%, from the previous session, and extended its losses throughout the day.
Foreign investors and institutions drove the index lower by posting net sales of KRW 1.9096 trillion and KRW 2.0437 trillion, respectively. Retail investors made net purchases worth KRW 2.3028 trillion.
Samsung Electronics and SK hynix plunged 4.02% and 4.73%, respectively. Other major decliners included SK Square (-7.97%), Samsung Electro-Mechanics (-2.10%), LG Energy Solution (-5.31%), Hyundai Motor (-5.62%), Samsung Biologics (-1.25%), and Samsung C&T (-4.48%).
Most sectors fell, with medical and precision instruments the only exception. Transport equipment and parts, electrical and electronic goods, machinery and equipment, manufacturing, distribution, construction, insurance, securities, and IT services posted particularly steep declines.
Investor sentiment is believed to have weakened sharply after international oil prices jumped by around 5% as the United States launched another airstrike on Iran. Intensifying selling in global bond markets also weighed on stocks, sending government bond yields in major countries sharply higher.
Kang Jin-hyuk, a researcher at Shinhan Investment & Securities, analyzed, "Geopolitical uncertainty continues, with a tanker being attacked near the Strait of Hormuz and the United States carrying out airstrikes on Iran. The rise of West Texas Intermediate crude oil (WTI) above $90 and the U.S. 10-year Treasury yield breaking above 4.8% are also weighing on the stock market."
Meanwhile, KOSDAQ (Korea Securities Dealers Automated Quotations) closed at 803.98, down 17.27 points, or 2.10%, from the previous session. KOSDAQ plunged to 796.34 early in the session but recovered some of its losses and managed to remain above 800.

[email protected] Seo Min-ji Reporter