Kospi Falls 1.9% Early as Oil Uncertainty, Chip Profit-Taking Weigh

South Korea’s Kospi fell back to the 8,700 level early Thursday as uncertainty over oil prices and profit-taking in semiconductor shares weighed on sentiment.

As of 9:07 a.m. on June 26, the benchmark index was down 170.44 points, or 1.91%, at 8,759.86.

Investor sentiment weakened after international crude prices rose following a reported attack on a vessel in the Strait of Hormuz. On June 25, the UK Maritime Trade Operations said it had received a report that a cargo ship transiting the Strait of Hormuz near Oman’s coast was suspected of having been attacked.

Brent crude for August settlement climbed 2.06% to settle at $75.26 a barrel on ICE Futures Europe. West Texas Intermediate for August delivery rose 2.25% to settle at $71.92 a barrel on the New York Mercantile Exchange.

In the Kospi market, foreign investors were net sellers of 646.8 billion won and institutions sold a net 59 billion won as of that time. Individuals were net buyers of 711.4 billion won.

Samsung Electronics and SK Hynix, the market’s two chip heavyweights, both declined. Samsung Electronics fell more than 1%, while SK Hynix dropped more than 2%, as investors locked in gains after a recent rally.

Most other large-cap stocks also traded lower, including SK Square, Hyundai Motor, Samsung Life Insurance, Samsung Biologics and LG Energy Solution. Samsung Electro-Mechanics and Samsung C&T advanced.

The Kosdaq also fell. As of that time, the index was down 18.44 points, or 2.08%, at 869.37. In the Kosdaq market, foreign investors were net sellers of 27.3 billion won and institutions sold a net 12.5 billion won. Individuals were net buyers of 13.9 billion won.

The won opened lower against the dollar. In Seoul trading, the won-dollar exchange rate opened at 1,547.30 won per dollar, up 4.6 won from the previous session.

Lee Su, Hankyung.com reporter 2su@hankyung.com