South Korean stocks closed lower on Thursday, influenced by rising tensions in the Strait of Hormuz that led to significant volatility in global oil prices. The Korean won also experienced a sharp decline against the US dollar.
The Korea Composite Stock Price Index (KOSPI) decreased by 26.7 points, or 0.48 percent, to finish the trading day at 5,583.25.
Trading volume was substantial, with 794.1 billion shares traded, amounting to 23.6 trillion won ($15.9 billion). Advancing stocks outnumbered declining ones, 569 to 321.
Foreign investors were net sellers, offloading 2.36 trillion won worth of shares, while individual investors purchased a net 2.23 trillion won. Institutions were net buyers, acquiring 53.9 billion won worth of shares.
Geopolitical tensions persisted in the Strait of Hormuz, a crucial waterway near Iran, despite claims from US President Donald Trump suggesting an end to the conflict was near. Reports of attacks on commercial vessels further fueled concerns.
In response to global oil price fluctuations, the International Energy Agency (IEA) announced plans to release oil reserves. However, investors remained cautious, fearing that the conflict could be prolonged.
“Global crude prices have once again exceeded $90 per barrel, and the stock market is reflecting these tensions,” stated Lee Kyoung-min, a researcher at Daishin Securities.
Despite the concerns, Lee noted that the South Korean stock market seems to be showing reduced volatility compared to recent swings.
“Seoul shares have become less sensitive to geopolitical risks,” Lee added.
Among prominent stocks, Samsung Electronics experienced a decline of 1.11 percent, closing at 187,900 won, while SK hynix fell by 2.62 percent to 930,000 won.
Food manufacturer Nongshim saw a significant drop of 5.08 percent to 374,000 won after local brokerage houses lowered their target stock price for the company.
Leading oil refiner SK Innovation, however, gained 1.84 percent to reach 121,700 won, and S-Oil increased by 2.97 percent to 118,000 won.
In the financial sector, Mirae Asset Securities decreased by 1.4 percent to 70,400 won, while Kiwoom Securities remained unchanged at 450,000 won.
The Korean won was trading at 1,481.2 won against the US dollar, a decrease of 14.7 won from the previous trading session, as of 3:30 p.m.
