"KOSPI Drops Over 2% in Early Trading as Hopes for End of War Fade... KOSDAQ Gains"

Ongoing Uncertainty Over US-Iran Conflict
Foreign Investors Record Net Sales Exceeding 1 Trillion Won

The KOSPI started off weak in early trading on May 8. Amid ongoing uncertainty over potential conflict between the United States and Iran, profit-taking pressure has intensified, particularly among stocks that have recently surged.

As of 9:10 a.m. on this day, the KOSPI index was trading at 7,336.91, down 153.1 points (2.04%) from the previous trading day. The index opened at 7,353.94, down 131.1 points (1.82%), and then extended its losses. Foreign investors have recorded net sales of 1.1254 trillion won. Institutional investors have made net purchases of 165 billion won, while individual investors have net purchased 950.1 billion won.

By sector, IT services (up 1.63%), food, beverages and tobacco (up 1.32%), telecommunications (up 1.26%), distribution (up 0.99%), and entertainment·culture (up 0.97%) showed gains. In contrast, construction (down 3.67%), machinery·equipment (down 3.15%), electrical·electronics (down 2.80%), insurance (down 2.60%), general services (down 2.36%), metals (down 2.30%), and manufacturing (down 2.25%) all recorded losses.

On the 8th, the KOSPI is displayed on the status board in the dealing room of Hana Bank in Jung-gu, Seoul. Photo by Yonhap News

Among large-cap stocks, Doosan Enerbility (down 4.33%), Samsung Electronics Preferred (down 4.15%), LS ELECTRIC (down 3.77%), HD Hyundai Heavy Industries (down 3.61%), Samsung Electronics (down 3.50%), HD Hyundai Electric (down 3.24%), SK Square (down 2.91%), Samsung Life Insurance (down 3.00%), SK hynix (down 2.78%), LG Energy Solution (down 1.45%), Samsung Electro-Mechanics (down 1.53%), and Hanwha Aerospace (down 1.29%) were all weak. On the other hand, Hyundai Motor (up 4.02%), Samsung C&T (up 1.60%), and Kia (up 0.70%) rose.

At the same time, the KOSDAQ index was trading at 1,210.13, up 10.95 points (0.91%) from the previous trading day. The KOSDAQ opened at 1,199.47, up 0.29 points (0.02%), and then widened its gains. Foreign investors have bought 147.9 billion won, and institutional investors have also recorded net purchases of 13.6 billion won. Individual investors have recorded net sales of 161.7 billion won.

Among large-cap KOSDAQ stocks, Rainbow Robotics (up 10.04%), Robotis (up 9.11%), Simmtech (up 7.23%), Kolon TissueGene (up 6.98%), Samchundang Pharm (up 4.88%), Legochem Bioscience (up 3.89%), ABL Bio (up 3.48%), Peptron (up 2.14%), and Ecopro BM (up 1.27%) were strong. In contrast, Jusung Engineering (down 2.37%), Wonik IPS (down 2.18%), LIG Nex1 (down 1.32%), and HPSP (down 1.28%) were weak.

Meanwhile, on May 7 (local time), all three major U.S. indices closed lower. Although expectations for an end to the war had grown after news broke the previous day that the United States and Iran might sign a memorandum of understanding, uncertainty over the negotiations resurfaced just a day later.

Han Ji-young, a researcher at Kiwoom Securities, stated, "Rapid and sharp price increases over a short period can provide market participants with incentives to realize profits." However, she added, "It is also time to remember that the war has entered a phase toward an end, and that earnings forecasts for the KOSPI, led by semiconductors, continue to be revised upward this year."

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