KOSPI retreats as Iran talks delayed

The benchmark KOSPI whipsawed on Friday after a delay in follow-up peace talks between the United States and Iran unsettled investors.

The index surged above the 9,300 mark and climbed to a record intraday high of 9,385.59 before reversing course. After sliding into the 8,800 range, it pared much of its losses to close at 9,052.42, down 11.42 points, or 0.13%, from the previous session. Early gains were driven by sharp advances in South Korea’s two largest chipmakers, Samsung Electronics and SK hynix.

The move followed a strong rally in U.S. semiconductor shares on June 18, when SanDisk rose 11.54%, Intel gained 10.64% and Micron Technology jumped 8.70%, fueling an AI-driven rally in Seoul.

Selling pressure intensified in the afternoon, led by institutional investors, sending the KOSPI sharply lower. Investor sentiment weakened after the White House announced that U.S. Vice President J.D. Vance's trip to Switzerland for follow-up talks with Iran had been postponed. The gap between the day's high and low reached 553.88 points, the fifth-largest intraday swing this year. Although the index recovered much of its decline late in the session, it still closed lower, ending a seven-session winning streak.

The tech-heavy KOSDAQ index also came under pressure, falling 34.34 points, or 3.43%, to 966.59. It finished below the 1,000-point level for the first time in six trading sessions.

After meeting with the heads of major securities firms, the Korea Exchange decided to delay the launch of extended premarket trading from 7 a.m. to 7:50 a.m. until the end of next year. The after-hours session, however, will begin as scheduled in September. Investors will then be able to trade stocks for an additional four hours after the regular market closes at 3:30 p.m.


지민구 warum@donga.com