Seoul’s stock market opened marginally higher on Monday, navigating renewed concerns over escalating Middle East tensions after Iran’s military threatened retaliation following a US attack on an Iranian-flagged vessel.
The benchmark Korea Composite Stock Price Index (KOSPI) started the trading day at 6,192.84, marking a slight increase of 0.01 percent (0.92 point) within the first 15 minutes.
This cautious opening follows Friday’s positive close on Wall Street, where major stock indexes gained over 1 percent. Optimism then stemmed from Iran’s announcement of reopening the Strait of Hormuz, easing earlier fears of regional conflict.
However, regional tensions quickly resurfaced after the US attacked an Iranian-flagged commercial vessel attempting to breach a naval blockade in the Sea of Oman, prompting Iran to once again close the vital Strait of Hormuz shipping route.
“The local stock market is poised for increased volatility this week, primarily driven by ongoing uncertainties surrounding US-Iran negotiations,” commented Han Ji-young, an analyst at Kiwoom Securities.
Investors and market participants continue to hope for a swift second round of US-Iran peace talks, especially after the initial discussions failed to yield a consensus.
Domestically in Seoul, large-cap stocks presented a mixed performance.
Market leader Samsung Electronics edged down by 1.04 percent. In contrast, its major chipmaking competitor, SK Hynix, saw a gain of 1.42 percent, ahead of its anticipated first-quarter earnings release later this week.
Automotive powerhouse Hyundai Motor experienced a decline of 2.04 percent. Meanwhile, nuclear power plant specialist Doosan Enerbility climbed 2.86 percent, and defense industry leader Hanwha Aerospace advanced by 1.05 percent.
