South Korean stocks pared early losses to close nearly unchanged on Friday amid the ongoing Middle East crisis stemming from the Iran conflict. The KOSPI index ended at 5,584.87, up 0.02 percent, while the won weakened against the U.S. dollar. Autos and defense shares led the gains.
On Friday, March 6, South Korean stocks opened lower amid ongoing oil supply concerns from the protracted Middle East conflicts, including the prolonged Iran crisis. The benchmark Korea Composite Stock Price Index (KOSPI) started 1.66 percent down but recovered in the afternoon to close at 5,584.87, up 0.02 percent or 0.97 points—following the week's high volatility with sharp drops earlier and a near-10 percent surge on Thursday.
Trading volume was robust at 1.2 billion shares worth 31.2 trillion won ($21.2 billion), with gainers outnumbering decliners 524 to 360. Individual investors net bought 2.9 trillion won of stocks, while foreigners and institutions sold net 1.1 trillion won and 1.9 trillion won, respectively.
Analysts attributed the flat close to a readjustment after Thursday's sharp rise. "It seems that the KOSPI experienced a readjustment following the previous session's 10 percent surge," said Lee Kyoung-min, an analyst from Daishin Securities. "The market has reflected massive volatility throughout this week, but bargain hunters supported the 5,500-point line."
Autos, defense, and battery shares drove the gains. Top carmaker Hyundai Motor rose 0.91 percent to 553,000 won, and affiliate Hyundai Mobis gained 2.78 percent to 444,000 won. Defense firm Hanwha Aerospace soared 7.24 percent to 1.48 million won, while LIG Nex1 surged 9.31 percent to 834,000 won. Battery maker LG Energy Solution increased 1.62 percent to 377,500 won, and POSCO Future M climbed 3.61 percent to 215,500 won. Game developers NCSOFT rose 4.89 percent to 214,500 won, and Netmarble advanced 11.34 percent to 54,000 won.
In contrast, chip giants Samsung Electronics fell 1.77 percent to 188,200 won, and SK hynix dropped 1.82 percent to 924,000 won. The Korean won traded at 1,476.4 against the U.S. dollar at 3:30 p.m., down 8.3 won from the prior session. Bond yields rose, with the three-year Treasury at 3.227 percent (up 3.8 basis points) and the five-year at 3.472 percent (up 3.0 basis points).
Overnight, U.S. stocks declined, with the Dow Jones Industrial Average down 1.61 percent and the Nasdaq Composite off 0.26 percent, contributing to Seoul's early weakness.
