Impact of Iran-Iraq War and Interest Rate Hike... KOSDAQ Plunges 3% Intraday

On the 19th, the KOSDAQ index plunged 3% during the trading session.

As of 1:35 PM that day, the KOSDAQ index stood at 784.58, down 24.31 points (3.01%) from the previous trading day.

The KOSDAQ index started weak, breaking below the 800 mark right after the market opened, and continued to widen its losses into the afternoon. The index falling to the 780 level is the first time in about seven months since March 17 (intraday low of 785.98).

In the KOSDAQ market, individual investors were net buyers of 220 billion KRW, but institutions and foreigners sold 105.7 billion KRW and 108.7 billion KRW respectively.

Choi Yoo-jun, Senior Researcher at Shinhan Investment Corp., said, "The decline is expanding mainly among growth stocks vulnerable to discount rates, such as secondary battery-related stocks and software." He added, "Due to concerns over rising interest rates caused by oil price increases and the possibility of year-end withdrawal of individual funds, volatility in small and mid-cap indices is expected to persist."

At the same time, the KOSPI index also recorded 2,417.81, down 44.79 points (1.82%). The geopolitical risk concerns continue to spread due to the war between Israel and the Islamic militant group Hamas in the Gaza Strip, causing international oil prices to surge and U.S. Treasury yields to reach their highest levels since 2006, reflecting the impact of rising interest rates.

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