US-Iran Conflict Hits Directly... KOSPI Opens Down 1% at 2154.97

"If the conflict prolongs, there is a possibility of falling below 1800 this year"

[Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] Due to the impact of the armed conflict between the United States and Iran, major domestic stock markets started the day down about 1% on the 6th.

On that day, the KOSPI opened at 2154.97, down 21.49 points (0.99%) from the previous trading day. As of 9:27 a.m., it was recording 2160.49.

In the stock market, foreigners and institutions net sold 8.1 billion KRW and 4.5 billion KRW, respectively. Individuals net bought 500 million KRW.

Most industries also started lower. Transportation and warehousing (1.70%), pharmaceuticals (1.22%), construction (1.15%), textiles and apparel (1.04%), and steel and metals (0.96%) saw particularly large declines.

Most of the top 10 market capitalization stocks also fell. POSCO had the largest drop at 1.48%. The bio sector, including Celltrion (1.41%) and Samsung Biologics (1.30%), mainly fell sharply. Others such as Samsung Electronics (0.90%), Naver (0.83%), and SK Hynix (0.74%) also declined. Meanwhile, Hyundai Mobis was the only stock to start up 0.40%.

At the same time, the KOSDAQ also started the session lower. It opened at 660.08, down 9.85 points (1.47%) from the previous trading day.

In particular, individuals focused on selling, recording a net sale of 30.8 billion KRW. Foreigners and institutions net bought 29.1 billion KRW and 900 million KRW, respectively.

Most sectors also fell. Telecommunications equipment and transportation equipment and parts dropped 2.05% and 2.14%, respectively. Others followed in order: medical and precision instruments (1.70%), pharmaceuticals (1.63%), paper and wood (1.60%), textiles and apparel (1.56%), and machinery and equipment (1.51%).

All of the top 10 market capitalization stocks also declined. HL Biopharma had the largest drop at 3.41%, followed by KMW (2.13%), Paradise (2.01%), Medytox (1.77%), and SK Materials (1.38%).

Since U.S. President Donald Trump continues to make strong remarks toward Iran, there is a forecast that if a full-scale war breaks out, the stock index decline could widen further.

Sangyoung Seo, a researcher at Kiwoom Securities, explained, "This year, the KOSPI was expected to peak in the first quarter and then decline from the third and fourth quarters due to economic slowdown and the U.S. presidential election, but this incident is likely to accelerate the timing of the index adjustment." He added, "As small-scale military operations continue in response to Iran, related uncertainties will prolong and concerns about economic slowdown will be highlighted." He further stated, "The KOSPI this year may fall below the initially expected fluctuation range (1900?2250). Although the possibility is currently low, if a full-scale war between the U.S. and Iran occurs, international oil prices will surge and the possibility of a global economic recession will increase, which could lead to a downward revision of the KOSPI's expected fluctuation range to 1800?2200."

This content was produced with the assistance of AI translation services.