KOSPI falls to lowest intraday level since the war began…semiconductor stocks plunge

Won-dollar exchange rate threatens to breach the 1,520-won level

The KOSPI index slid to its lowest level since the outbreak of the war as signs emerged that the conflict could drag on following U.S.-Israeli airstrikes on Iran.

As of 9:40 a.m. on the 31st, the KOSPI was down 213.46 points, or 4.04%, from the previous session at 5,063.84. The index briefly widened losses to 5,058.79, down 4.14%, falling below the intraday low recorded on the 4th (5,059.45). This marked the lowest level since the war began.

The decline is seen as reflecting fading expectations for ceasefire negotiations between the U.S. and Iran.

U.S. President Donald Trump on the previous day continued his threatening remarks, saying, "If the Strait of Hormuz is not opened immediately, the U.S. will bomb Iran’s power plants, oil fields, and Kharg Island."

The arrival of U.S. ground forces in the Middle East also heightened fears of further escalation. U.S. broadcaster CBS reported that several hundred Navy and Army special forces personnel have recently been deployed to the region, and are expected to be tasked with missions such as securing Iran’s enriched uranium and landing on Kharg Island.

At this time, in the main bourse, foreign investors and institutional investors are posting net sales of 1.4726 trillion won and 475.4 billion won, respectively. Retail investors show a net buying advantage of 1.9763 trillion won.

Most top KOSPI market-cap stocks are falling. Samsung Electronics slid 3.74% early in the session, pulling its share price down into the 160,000-won range. SK hynix is also tumbling 5.96%.

The KOSDAQ is also weakening for a second consecutive day. At this time, the KOSDAQ is down 2.58% from the previous session at 1,078.45.

The won-dollar exchange rate is threatening the 1,520-won level. In the Seoul foreign-exchange market, the won-dollar rate opened at 1,519.9 won, up 4.2 won from the previous session.

The won-dollar exchange rate briefly rose above 1,520 won intraday the previous day, marking its highest level in more than 17 years since March 10, 2009, during the global financial crisis (intraday 1,561 won).

Noh Jeong-dong, Hankyung.com reporter dong2@hankyung.com