The Kospi and won-dollar exchange rate are displayed at the dealing room of Hana Bank's headquarters in Jung-gu, Seoul, on Monday, after the index fell 1.45 percent to close in the 5,400 range — its lowest level in about seven months. [Yonhap]
The Kospi and won-dollar exchange rate are displayed at the dealing room of Hana Bank's headquarters in Jung-gu, Seoul, on Monday, after the index fell 1.45 percent to close in the 5,400 range — its lowest level in about seven months. [Yonhap]

The Kospi slipped below the 5,500 mark under pressure from foreign selling, closing at its lowest level in about seven months. Surging global oil prices driven by escalating Middle East tensions, combined with a cautious wait-and-see mood ahead of major US economic and political events, amplified downward pressure on the market. The Kosdaq also plunged more than 3 percent, spreading weakness across the broader domestic market.

According to Korea Exchange, the Kospi closed Monday at 5,469.47, down 80.83 points, or 1.46 percent, from the previous session. It was the lowest closing level since April 6 (5,450.33). The index opened down 51.25 points, or 0.92 percent, at 5,499.05 and briefly turned positive during the session before failing to sustain a rebound. Losses deepened in the final minutes of trading.

The Kospi had appeared to be building a floor by holding above 5,500 even amid recent sharp declines, but ultimately failed to defend that level Monday. Since Oct. 19, the index has alternated between gains and losses on consecutive days, with volatility persisting.

Foreign investors led the decline, posting net selling of 697.2 billion won ($526 million) on the main board, adding to downward pressure on the index. Retail investors and institutions were net buyers of 47.4 billion won and 611 billion won, respectively.

The domestic market opened lower after Middle East tensions flared over the weekend, sending global oil prices sharply higher. Early in the session, the index attempted a rebound on expectations that Samsung Electronics and SK hynix would announce additional shareholder return measures, but the rally failed to gain traction.

The result appeared to reflect a prevailing wait-and-see mood ahead of a series of major events, including the US Federal Open Market Committee meeting, earnings releases from Microsoft and other major tech companies, and US midterm elections.

SK hynix surged nearly 3 percent early in the session on reports the company was considering a large special dividend, but gave back all of its gains during trading to close down 0.16 percent. SK Square ended the day down 0.77 percent. Samsung Electronics attempted a rebound after a weak open but failed, ultimately closing down 1.16 percent.

Among other major stocks, Samsung Life Insurance (up 0.61 percent) and Samsung C&T (up 1.39 percent) were the exceptions, while LG Energy Solution (down 2.09 percent), Samsung Electro-Mechanics (down 0.36 percent), Samsung Biologics (down 0.95 percent) and Hyundai Motor (down 2.54 percent) were among the broad decliners.

HD Hyundai Marine Solution plunged 13.7 percent after reporting third-quarter earnings that fell short of market expectations. LIG Defence and Aerospace fell 9.8 percent after news that the Defense Acquisition Program Administration was reviewing additional sanctions against the company — its fifth consecutive session of losses.

The Kosdaq also fell, closing at 727.21, down 24.48 points, or 3.26 percent, from the previous session — its lowest close since July 31 (719.76). The index opened down 9.52 points, or 1.27 percent, at 742.17 and steadily extended its losses throughout the day.

Institutions were net sellers of 127.8 billion won on the Kosdaq. Retail investors and foreign investors posted net purchases of 85.4 billion won and 39 billion won, respectively, but that was not enough to support the index.

Among the top Kosdaq stocks by market cap, most declined, including Alteogen (down 2.67 percent), Ecopro (down 4.13 percent), Ecopro BM (down 3.45 percent) and Jusung Engineering (down 6.84 percent). Robotis bucked the trend, rising 9.56 percent.

The won edged up slightly against the dollar. As of 3:30 p.m., the won was trading at 1,321.1 won per dollar in the Seoul foreign exchange market, up 1.5 won from the previous session.


th5@heraldcorp.com