KOSPI, aiming for 7,000 amid semiconductor boom, held back by oil prices... "Caution persists"

The KOSPI attempted to secure a position below the 7,000 mark amid a semiconductor boom but was held back by external variables such as rising international oil prices. With heightened tensions in the Middle East and upcoming U.S. inflation data releases, caution is expected to persist.

On the 8th, the KOSPI closed at 6,954.52, down 40.87 points (0.58%) from the previous day. The index opened above the 7,000 mark and reclaimed it intraday for the first time in 15 trading sessions. It then widened its gains to reach 7,171.52 before reversing course downward toward the close.

The KOSPI rose on renewed investor sentiment for semiconductor stocks following OpenAI's release of GPT-6 Astra and expectations for U.S.-related investment projects. However, toward the end of trading, rising international oil prices, trade tensions between the U.S. and Canada, and caution ahead of the release of U.S. inflation data pulled the index down.

Lee Kyung-min, head of FICC Research at Daishin Securities, stated, "The domestic market showed strength on the previous day due to OpenAI's announcement of GPT-6 Astra and Nvidia's acquisition of Hugging Face, and maintained an upward trend following a U.S. market holiday. However, as international oil prices continued to rise in the afternoon and caution emerged ahead of U.S. inflation data, the market declined."

Saudi Aramco's refining facilities were attacked, causing international oil prices to surge sharply. During trading, WTI (West Texas Intermediate) and Brent crude futures each exceeded $93 and $97, respectively. On the 10th and 11th, U.S. August PPI (producer price index) and CPI (consumer price index) will be released, respectively.

In the KOSPI market, retail investors sold net shares worth 3.3334 trillion won. Foreign investors turned to net buying during trading, purchasing stocks worth 648.3 billion won. Institutional investors also bought net shares worth 642.9 billion won.

Among KOSPI sectors, IT (information technology) fell 3.21%, and medical devices and precision equipment declined by 2.1%. Transportation equipment and parts, pharmaceuticals, logistics warehouses, insurance, telecommunications, and chemicals all dropped more than 1%. In contrast, electric power and gas and construction rose over 3%, while general services increased by 1.74%.

Among the top market capitalization stocks in KOSPI, Samsung Electronics fell 5.78%. LG Energy Solution and Hyundai Motor slipped 3.86% and 2.04%, respectively. Samsung Electronics, which had shown an upward trend during trading, closed nearly flat, while SK Hynix and SK Square also closed with slight gains. Doosan Enerbility, which had surged more than 6% on expectations of benefiting from U.S.-related investment projects, managed only a 1.82% increase.

The KOSDAQ recorded a decline of 10.31 points (1.25%) to close at 811.88 compared to the previous day. Although it opened higher on this day, it ultimately closed lower.

In the KOSDAQ market, institutional investors sold net shares worth 217.9 billion won. Retail and foreign investors bought net shares worth 149.1 billion won and 60.8 billion won, respectively.

Among KOSDAQ sectors, general services, pharmaceuticals, textiles and apparel, machinery and equipment, chemicals, and manufacturing all declined by more than 1%. Metals and entertainment and culture closed nearly flat.

Among the top market capitalization stocks in KOSDAQ, semiconductor materials, components, and equipment (MCE) stocks showed strength but narrowed their gains just before the close. Juseong Engineering rose 3.95%, while Simtek and Padu increased by 1.67% and 1.57%, respectively. In contrast, AlteoGen, RAINBOW Robotics, and HLB all fell more than 3%.

On this day, the won/dollar exchange rate closed at 1,345.6 won for the week, up 5.1 won from the previous trading day's closing price.

Experts in the financial investment industry forecast that caution will continue to dominate the market going forward.

Lee Sang-yeon, a researcher at Shinhan Securities, said, "This week, due to caution over inflation data, the stock market is likely to decline toward the end of the week. If U.S. PPI and CPI results come out better than expected, the market may rebound. However, if not, KOSPI gains will be limited until the September FOMC (Federal Open Market Committee) meeting scheduled for the 15th or 16th."