KOSPI Falls Below 7,000 As Oil Prices Surge And Interest Rates Rise
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South Korea’s KOSPI fell 1.76% to 6,909.91 as oil prices climbed above $100 a barrel and bond yields rose. Heavy foreign and institutional selling weighed on stocks ahead of the US August CPI release.
South Korea’s benchmark index, the Korea Composite Stock Price Index (KOSPI), fell sharply on Friday, 11 September, as surging international oil prices and rising interest rates weighed on investor sentiment.
The KOSPI closed at 6,909.91, down 124.01 points, or 1.76%, slipping below the 7,000 level for the first time in three trading sessions. The index had opened at 6,802.50, a decline of 3.29%, before recovering part of its early losses.
Foreign and institutional investors remained net sellers, while retail investors and other corporations provided some support. Foreign investors also sold 680 billion won worth of KOSPI 200 futures. The won weakened to 1,345.9 per dollar, down 6.7 won from the previous session.
Share Price Movement
Large-cap stocks came under pressure, particularly in the technology and manufacturing sectors.
Samsung Electronics | -3.53% |
SK Hynix | -2.21% |
SK Square | -4.05% |
LG Energy Solution | -1.37% |
Hyundai Motor | -1.67% |
KB Financial Group | +2.60% |
Doosan Enerbility | +1.00% |
Hanwha Aerospace | +1.31% |
Oil Prices And Bond Yields Rise
Brent crude futures climbed to $105.74 a barrel, while West Texas Intermediate (WTI) reached $100.92, with both benchmarks moving above the $100 threshold.
The rise in energy prices intensified inflation concerns and pushed borrowing costs higher. The 10-year US Treasury yield moved above 4.9%, while South Korea’s three-year government bond yield exceeded 4.0% during the session, reaching its highest level in roughly three years.
KOSDAQ Also Ends Lower
The Korea Securities Dealers Automated Quotations (KOSDAQ) declined 16.28 points, or 1.95%, to 820.64. Foreign and institutional investors sold, while retail investors remained buyers.
Among major stocks, Alteogen fell 3.25%, EcoPro declined 2.88%, and EcoPro BM dropped 7.08%. PSK Holdings gained 1.29%, while Olikx advanced 9.52%.
US Consumer Price Index (CPI) in Focus
Investor activity remained subdued ahead of the release of the US Consumer Price Index for August. Concerns over inflation, oil prices and interest rates kept investors cautious, with trading also affected by the approaching weekend.
Trading value reached 19.39 trillion won on KOSPI, and 6.36 trillion won on KOSDAQ, while Nextrade recorded 8.8565 trillion won across its pre-market and regular sessions.
Also Read - Taiwan Stocks End Lower As Healthcare, Plastics Shares Weigh On Market
This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
When she's not decoding markets, she trades charts for canvases, chasing art, painting, and architecture across cities she's yet to explore.
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