South Korean stocks traded mixed on the 13th morning, with KOSPI falling at open then turning volatile. SK Hynix dropped over 3% while Samsung Electronics gained. Geopolitical tensions escalated as US President Trump ended Iran ceasefire, Iran blocked Strait of Hormuz, and US airstrikes began at 6 AM Korean time on the 13th, lifting oil prices. Foreign institutions' ADR-buy-local-short strategy on SK Hynix added pressure.
KOSPI and KOSDAQ Show Divergent Intraday Movements on the 13th
As of 9:03 AM on the 13th, KOSPI stood at 7511.68, up 35.74 points (0.48%) from the previous trading day. The index opened at 7412.03, down 63.91 points (0.85%), and briefly fell to 7386.58 before recovering. KOSDAQ opened at 839.72, up 2.29 points (0.27%), and expanded gains to 852.55 at 9:03 AM, up 15.12 points (1.81%).
SK Hynix Falls 3% While Samsung Electronics Gains in Morning Trading
SK Hynix traded at 2,106,000 won as of 9:07 AM on the 13th, down 3.39% from the previous session. The stock opened at 2,113,000 won, down 3.07%, and fell as low as 2,084,000 won (down 4.40%) shortly after market open before recovering slightly. Samsung Electronics traded at 287,000 won at the same time, up 0.70%.
US Stocks Close Higher Ahead of Weekend
US markets closed uniformly higher on the 10th (local time). The Dow Jones Industrial Average rose 0.29%, the S&P 500 gained 0.42%, and the Nasdaq Composite advanced 0.29%. SK Hynix ADR listed on Nasdaq closed at $168.49, up 13% from its offering price and 15.78% higher than the domestic stock's closing price of 2,180,000 won the previous week.
Geopolitical Tensions and ADR Strategy Weigh on SK Hynix
Over the weekend, US President Donald Trump officially declared the end of the ceasefire with Iran. Iran subsequently blocked the Strait of Hormuz, a critical global energy transit route, and US Central Command launched additional airstrikes starting at 6 AM Korean time on the 13th, causing international oil prices to surge. Some foreign institutions proposed an 'ADR buy, local short' strategy on SK Hynix, which analysts cited as a factor pressuring the domestic stock price.
Investor Flows Show Institutional Buying, Individual and Foreign Selling
As of 9:07 AM on the 13th in the securities market, institutions net purchased 36 billion won, while individuals and foreigners net sold 10.7 billion won and 26.7 billion won respectively. In the electrical and electronics sector, individuals net bought 18.3 billion won, while foreigners and institutions net sold 15.9 billion won and 3.7 billion won respectively.
FAQ
What happened to Korean stocks on the 13th morning?
Korean stocks showed mixed trading on the 13th morning. KOSPI opened down 0.85% at 7412.03 before recovering to 7511.68 (up 0.48%) by 9:03 AM. KOSDAQ opened up 0.27% and expanded gains to 1.81% at the same time.
Why did SK Hynix fall while Samsung Electronics rose on the 13th?
SK Hynix fell 3.39% to 2,106,000 won as of 9:07 AM on the 13th, pressured by geopolitical tensions and foreign institutions' strategy of buying SK Hynix ADRs while shorting local shares. Samsung Electronics rose 0.70% to 287,000 won at the same time.
What geopolitical factors affected Korean stocks on the 13th?
US President Trump ended the ceasefire with Iran, Iran blocked the Strait of Hormuz, and US Central Command launched airstrikes starting at 6 AM Korean time on the 13th, driving oil prices higher and increasing market uncertainty.
