[Edaily Reporter PARK MIN ] On the 11th, the KOSPI fell 1.76% to close just above the 6,900 mark, hit by soaring international oil prices and a sharp rise in U.S. Treasury yields amid escalating fears of a full-scale war between the U.S. and Iran. Concerns over the prolonged tightening cycle by the U.S. Federal Reserve (Fed) resurfaced due to inflationary pressures driven by oil prices, prompting foreign and institutional investors to dump over 3.4 trillion won worth of shares. As a result, the index lost the 7,000-point mark it had barely held onto the previous day.

According to MP Doctor, as of 3:35 p.m., the KOSPI closed at 6,909.91, down 1.76% (124.01 points) from the previous trading day. Immediately after the market opened, the KOSPI plunged 3.29% to 6,802.50, threatening to fall below the 6,800 mark. Later, net buying by other corporate entities and bargain-hunting by retail investors helped narrow the losses slightly toward the close, allowing the index to finish the day just above the 6,900 mark.

By investor type, “dual selling” by foreign and institutional investors put pressure on the index. Foreign investors and institutions recorded net sales of 2.3469 trillion won and 1.1137 trillion won, respectively, offloading a combined 3.4606 trillion won worth of shares. In contrast, retail investors bought 1.8128 trillion won worth of shares, and other corporate entities joined the net buying trend with approximately 1.6 trillion won, but this was insufficient to push the index into positive territory.

Top-market-cap stocks fell across the board in the wake of last night’s sharp decline in tech stocks on the New York Stock Exchange. SamsungElectronics(005930)closed at 259,500 won, down 3.53% from the previous trading day, while SK hynix(000660)also fell 2.21% to 1,812,000 won. SamsungElectronics(1P)(005935)(-4.78%) and SKSQUARE(402340)(-4.05%) also fell in the wake of the two leading semiconductor stocks, while SamsungElectroMechanics(009150)remained flat (0.00%).

HyundaiMotor(005380)Major sector leaders, including LG Energy Solution(373220)(-1.67%), (-1.37%), Samsung Life Insurance(032830)(-0.65%), and SAMSUNG BIOLOGICS(207940)(-0.56%), also fell across the board. In contrast, KB Financial Group(105560)—considered a key beneficiary of the sharp rise in interest rates—closed up 2.60% at 177,900 won, standing out as the only large-cap stock to post a solid gain.

At the same time, the KOSDAQ Index also closed at 820.64, down 16.28 points (1.95%) from the previous trading day, due to a sell-off in growth stocks. In the KOSDAQ market, foreign investors and institutional investors drove the index down with net sales of 323.1 billion won and 195.0 billion won, respectively, while retail investors made net purchases of 502.7 billion won. The number of stocks that fell reached 1,101, more than double the number of stocks that rose (547).

The top-market-cap stocks on the KOSDAQ also fell across the board in line with the index decline. Alteogen Inc.(196170)closed at 268,000 won, down 3.25%, while major secondary battery stocks ECOPRO BM CO., LTD.(247540)(-7.08%) and ECOPRO CO., LTD(086520)(-2.88%) also plunged. WONIK IPS Co.,Ltd.(240810)(-7.15%), JUSUNG ENGINEERING Co.,Ltd.(036930)(-5.43%), LEENO Industrial Inc(058470)(-4.18%), Rainbow Robotics(277810)(-2.90%), EO Technics Co., Ltd.(039030)(-2.09%), and SIMMTECH Co., Ltd.(222800)(-2.02%)—selling pressure flooded the market across the board for materials, components, and robotics stocks.

By sector, stocks expected to benefit from rising interest rates stood out as buying interest surged amid growing expectations of a U.S. benchmark interest rate hike. The property and casualty insurance sector surged 4.18% on the back of a broad rally, with stocks such as SamsungFire&MarineInsurance(000810)(+6.03%), DB INSURANCE(005830)(+2.95%), Korean Reinsurance Company(003690)(+2.41%), and Hyundai MARINE & FIRE INSURANCE CO.,LTD(001450)(+1.79%) all posting gains. The shipbuilding sector (3.12%) and the banking sector (2.20%) also joined the rally.

In contrast, technology and manufacturing stocks—including electronics (-3.33%), non-ferrous metals (-3.17%), and semiconductors and semiconductor equipment (-3.13%)—unanimously ranked among the top decliners.

Overnight on the New York Stock Exchange, the three major indices closed lower for the fourth consecutive trading day amid “inflation fears,” as West Texas Intermediate (WTI) crude oil broke through the $102-per-barrel mark and the yield on the 10-year U.S. Treasury note surpassed 4.95% due to concerns over a prolonged U.S.-Iran conflict and the threat of a Red Sea blockade.

The securities industry views the U.S. August Consumer Price Index (CPI), set to be released tonight, as the key turning point that will determine the direction of the Federal Reserve’s (Fed) September interest rate decision. According to the CME FedWatch Tool, the probability of a 0.25 percentage point benchmark rate hike at the September Federal Open Market Committee (FOMC) meeting has surpassed 70%.

Han Ji-young, an analyst at KIWOOM Securities, said, “Depending on the August CPI results, short-term volatility could widen again through next week; however, if the figures do not deviate significantly from the consensus, there is a high likelihood of a pullback in rising oil prices and interest rates.” She added, “In this case, the 7,000-point level—which previously served as a resistance line—could continue to transition into a support line.”