South Korean equities commenced trading lower on Friday, experiencing profit-taking after a recent strong rally fueled by optimism over de-escalating tensions in the Middle East.
Following a marginal opening gain of 0.02 percent, the benchmark Korea Composite Stock Price Index (KOSPI) quickly reversed course, falling 34.82 points, or 0.56 percent, to reach 6,191.23 within the first 15 minutes of Friday’s trading session.
This dip comes after the KOSPI had successfully climbed for three consecutive sessions, notably closing above the significant 6,200-point threshold on Thursday for the first time since the US-Iran conflict erupted on February 28.
The renewed market confidence was largely attributed to overnight developments, including a statement from Trump suggesting a potential meeting between the United States and Iran over the weekend, alongside news that Israel and Lebanon had agreed to a 10-day ceasefire.
Meanwhile, major US stock indexes on Wall Street concluded the previous trading day higher, with the Dow Jones Industrial Average advancing 0.24 percent, the S&P 500 gaining 0.26 percent, and the tech-heavy Nasdaq Composite adding 0.36 percent.
Domestically in Seoul, technology and financial sector shares were primary drivers of the market’s subdued opening performance.
Market leader Samsung Electronics saw its shares decline by 0.92 percent, while memory chip giant SK hynix experienced a 1.13 percent loss.
Prominent banking groups also faced headwinds, with Woori Financial Group dropping 0.7 percent and Shinhan Financial Group decreasing by 0.3 percent.
Further impacting the market, bio-pharmaceutical powerhouse Samsung Biologics retreated 1.42 percent, and national flag carrier Korean Air saw its stock fall by 1.39 percent.
In contrast, top automaker Hyundai Motor posted a gain of 0.94 percent, and its affiliate Kia also performed well, rising 0.44 percent.
