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An employee monitors stock and foreign exchange markets at the dealing room of Hana Bank’s headquarters in Jung-gu, Seoul, on Sept. 10. The KOSPI closed down 17.72 points, or 0.25%, at 7,033.92. / Yonhap

The KOSPI managed to hold above the 7,000 mark despite heightened volatility on Quadruple Witching Day.

According to the Korea Exchange on Sept. 10, the KOSPI closed at 7,033.92, down 0.25% from the previous session. The KOSDAQ ended 0.79% higher at 836.92.

The day marked Quadruple Witching Day, when KOSPI futures and options as well as individual stock futures and options expire simultaneously, raising expectations of increased market volatility.

The KOSPI opened 0.18% lower at 7,038.85 and fell below 6,900 during intraday trading before rebounding to narrowly hold the 7,000 level.

US stocks closed lower for a third consecutive session amid escalating tensions in the Middle East. All three major Wall Street indexes declined as rising international oil prices weighed on investor sentiment. Crude prices surged more than 3% as clashes between the United States and Iran intensified, pushing Brent crude above $100 a barrel to its highest level in four months.

With rising oil prices and interest rates coinciding with Quadruple Witching Day, foreign investors sold a net 2.7226 trillion won on the KOSPI. Institutional and retail investors, meanwhile, bought a net 112.5 billion won and 959.9 billion won, respectively.

Samsung Electronics and SK hynix closed down 0.19% and 0.16%, respectively. Taiwan’s TSMC, the world’s largest contract chipmaker, posted revenue of 514.806 billion [currency as reported], or about 21.9 trillion won, last month, which analysts said helped support investor sentiment toward semiconductor stocks.

Market watchers said that although the KOSPI managed to defend the 7,000 level, volatility is likely to persist for the time being due to uncertainty surrounding oil prices and US interest rate and inflation indicators.

Some analysts said heightened volatility surrounding Oracle’s earnings announcement and the August Consumer Price Index could push the index back below 7,000. However, share buybacks by Samsung Electronics and SK hynix, along with a shift by foreign investors to net buying this month, were cited as factors providing some relief.

“The fact that gains have spread beyond semiconductors to other sectors despite high levels of uncertainty surrounding the Middle East and macroeconomic conditions shows that the domestic stock market’s liquidity base and underlying strength have improved,” said Han Ji-young, an analyst at Kiwoom Securities.

“Even if volatility increases this week due to the CPI, the Federal Open Market Committee and the war, it would be premature to interpret that as a breakdown in the broader market trend,” Han added.

                                                                                                       Yoon Seo-young