KOSPI Rebounds, KOSDAQ Falls... Aftermath of Luhansk Attack

[Image source=Yonhap News]

[Asia Economy Reporter Hwang Junho] On the afternoon of the 17th, the stock market, which had been on the rise following news that the Ukrainian military attacked the pro-Russian rebel-controlled Luhansk Republic, turned downward before regaining its upward momentum.

As of 1:37 PM, the KOSPI index stood at 2745.93, up 16.25 points (0.60%) from the previous session. Foreign and institutional investors showed net buying intentions worth 455 billion KRW and 369.2 billion KRW respectively, driving the market higher.

Earlier at around 1:08 PM, the KOSPI had shifted to a decline of 1.08% after reports citing the Joint Control and Coordination Center (JCCC) stated that the Ukrainian military launched mortar and grenade attacks on four locations in the Luhansk Republic, controlled by pro-Russian rebels.

However, market participants appear to be assessing the authenticity of the reports, noting that the area has experienced localized conflicts before, and are considering the validity of the information and possible responses.

Meanwhile, the KOSDAQ index turned downward following the reports and has yet to recover, currently down 0.34% at 874.48. Individual and institutional investors are net buying 2.2 billion KRW and 44.9 billion KRW respectively, while foreign investors are net selling at 43.3 billion KRW.

The USD/KRW exchange rate initially rose by up to 0.29% compared to the previous session but has since narrowed to a 0.05% increase, currently at 1198.10 KRW.

Seo Sang-young, a researcher at Mirae Asset Securities, commented, "Even when the Ukraine issue escalated recently, the Ukrainian government forces occasionally attacked the Donetsk and Luhansk regions. Given this, the likelihood of renewed diplomatic tensions between Russia and Western countries over this incident is low."

Han Ji-young, a researcher at Kiwoom Securities, also analyzed, "Since Russia did not initiate the attack and the areas shelled by Ukraine are part of the Donbas region, where localized conflicts have occurred before, it seems more appropriate to monitor additional information and respond to the market accordingly rather than panic selling."

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