On the 3rd, as the KOSPI index opened down in the 2% range amid the war between the United States and Iran, various indices are displayed on the status board in the dealing room of Hana Bank in Jung-gu, Seoul. Reporter Lee Jun-heon

On the 3rd, the first trading day for the domestic market after the U.S. strike on Iran, the KOSPI index fell more than 2% during the session, surrendering the 6,200 mark.

That day, the KOSPI began trading at 6,165.15, down 78.98 points (1.26%) from the previous session. During the session, it fell as much as 162.21 points (2.60%) to 6,081.92, giving up the 6,100 level as well. The KOSDAQ index also dropped more than 2% intraday, at one point sliding to the 1,160 level.

As expectations that the strike on Iran would not become prolonged kept investor sentiment from deteriorating, with the U.S. Nasdaq ending slightly higher, losses have been limited. However, just before the U.S. market closed, Iran said it would control the Strait of Hormuz, which accounts for 20% of oil and liquefied natural gas (LNG) shipments, heightening risk aversion and weighing on the domestic market.

In the KOSPI market that day, foreigners were net sellers of nearly 1.1 trillion won early in the session, but individual investors bought a net 700 billion won and institutions 400 billion won, moving in for ‘bargain buying’.

Samsung Electronics and SK Hynix fell more than 3%, and Hyundai Motor and LG Energy Solution dropped more than 4% during the session, reflecting weakness among large-cap stocks. However, defense stocks such as Hanwha Aerospace (13.14%) and Hyundai Rotem (10.63%), which tend to be firm during geopolitical crises, are strong and helping to support the index.

Defense-related names such as HD Hyundai Heavy Industries (1.82%) and Hanwha Ocean (4.96%), as well as refiners such as S-OIL (21.27%), are also strong.