South Korean stocks closed nearly flat on Friday, paring earlier losses as investor interest grew in auto and defense stocks amid ongoing geopolitical tensions in the Middle East. The Korean won weakened against the US dollar.
After opening 1.66 percent lower, the Korea Composite Stock Price Index (KOSPI) reversed course in the afternoon to finish at 5,584.87, a marginal increase of 0.02 percent, or 0.97 points.
This week has been volatile for the KOSPI, influenced by the Middle East conflict. The index experienced significant drops of 7.24 percent and 12.06 percent on Tuesday and Wednesday, respectively, followed by a substantial rebound of 9.63 percent on Thursday.
Trading volume was robust, with 1.2 billion shares changing hands, valued at 31.2 trillion won ($21.2 billion). Advancing stocks outnumbered decliners 524 to 360.
Individual investors were net buyers, purchasing 2.9 trillion won worth of stocks, while foreign and institutional investors were net sellers, offloading 1.1 trillion won and 1.9 trillion won, respectively.
Analysts suggest that the South Korean financial market has been significantly impacted by geopolitical events in the Middle East, but underlying strengths have helped support the index.
“The KOSPI appears to have undergone a correction following the previous session’s 10 percent rally,” noted Lee Kyoung-min, an analyst at Daishin Securities. “The market has displayed considerable volatility this week, but bargain hunting provided support around the 5,500-point level.”
Shares in the auto, defense, and battery sectors performed well.
Leading automaker Hyundai Motor increased by 0.91 percent to 553,000 won, while its auto parts affiliate, Hyundai Mobis, rose by 2.78 percent to 444,000 won.
Defense company Hanwha Aerospace surged by 7.24 percent to 1.48 million won, and LIG Nex1 climbed by 9.31 percent to 834,000 won.
Major battery manufacturer LG Energy Solution gained 1.62 percent to 377,500 won, and Posco Future M increased by 3.61 percent to 215,500 won.
Among game developers, NCSOFT advanced by 4.89 percent to 214,500 won, and Netmarble jumped by 11.34 percent to 54,000 won.
However, semiconductor giants Samsung Electronics declined by 1.77 percent to 188,200 won, and SK hynix fell by 1.82 percent to 924,000 won.
