KOSPI slides 3% in early trade on oil surge… won-dollar opens at 1,490

Won-dollar exchange rate opens in the 1,490 won range

The KOSPI opened down 3%. With global crude prices breaking above $100 after hawkish remarks from Iran’s new supreme leader, investor sentiment appeared to have frozen.

As of 9:06 a.m. on the 13th, the KOSPI was at 5,411.71, down 171.54 points (3.07%) from the previous session. After opening at 5,412.39, the index slid as far as 5,392.52 intraday, briefly slipping below the 5,400 level. It has since pared some losses and is trading in the low 5,400s.

In the main board market, foreigners and institutions are net sellers of 339.3 billion won and 313.9 billion won, respectively, dragging the index lower. Retail investors are net buyers of 685.9 billion won, absorbing supply.

KOSPI heavyweights were broadly weaker. Losses were led by LG Energy Solution (-4.95%), followed by SK Square (-4.15%), Kia (-4.13%), SK hynix (-4.09%), Samsung C&T (-3.74%), Samsung Electronics (-3.73%), Hyundai Motor (-3.26%), Shinhan Financial Group (-2.61%), Samsung Biologics (-2.58%), Celltrion (-2.18%), KB Financial Group (-2.14%), Doosan Enerbility (-1.84%) and Hanwha Aerospace (-1.57%).

The KOSDAQ was at 1,127.05, down 21.35 points (1.86%) from the previous day. After opening at 1,122.28, down 2.27%, it has been trending higher and narrowing its decline.

In the KOSDAQ market, retail investors are net sellers of 41.4 billion won. Foreigners and institutions are net buyers of 29.9 billion won and 14.5 billion won, respectively.

Most KOSDAQ heavyweights were also lower. EcoPro BM (-5.06%) fell more than 5%, while Lino Industrial (-3.57%), Rainbow Robotics (-3.55%), EcoPro (-3.42%), Alteogen (-2.95%), Wonik IPS (-2.83%), Samchundang Pharm (-2.67%), ABL Bio (-1.77%), HLB (-1.73%), Kolon TissueGene (-1.39%) and Caregen (-1.2%) also traded weaker.

The won-dollar exchange rate opened at 1,490.60, up 9.40 won from the previous session, and has been trading in the high-1,480s.

Lee Sung-hoon, an analyst at Kiwoom Securities, said, "As the risk-off phase driven by the war continues and upside pressure on the won-dollar exchange rate is intensifying, it remains uncertain whether foreign inflows that could drive a market rebound will materialize in earnest," adding, "Given the lack of clear direction in the index, we expect a stock-picking market to persist for the time being."

On the 12th (local time), at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average fell 1.56% to close at 46,677.85, the lowest level this year. The S&P 500 slipped 1.52% to 6,672.62, and the Nasdaq Composite dropped 1.78% to 22,311.979.

Investor sentiment weakened as crude prices surged. Global benchmark Brent crude climbed 9.2% to settle at $100.46 a barrel. U.S. West Texas Intermediate (WTI) rose 9.7% to $95.73 a barrel.

Concerns intensified after Mojtaba Khamenei, elected as Iran’s new supreme leader, declared an ultra-hardline stance toward the United States and Israel in his first message. In his first official statement, he urged that "the leverage of blocking the Strait of Hormuz should continue to be used as a means of pressure on the enemy." Iran’s Islamic Revolutionary Guard Corps (IRGC) also said it attacked four vessels in the vicinity of the Strait of Hormuz.

By Jin Young-gi, Hankyung.com reporter young71@hankyung.com