KOSPI index falls below 7,000 amid global market jitters

South Korea's KOSPI index dropped below the 7,000-point mark in early trading on Thursday, July 24, reflecting global market anxieties. The benchmark index opened down 96.11 points, or 1.35%, at 7,000.78 and continued its downward trend, currently trading at 6,876.90, down over 3% from the previous day.

This downturn is largely seen as a spillover effect from escalating tensions between the United States and Iran. The geopolitical instability has fueled a rise in international oil prices and contributed to a weak performance on Wall Street overnight. All three major U.S. stock indices registered losses, with the Dow Jones Industrial Average falling 0.97%, the S&P 500 declining 1.21%, and the Nasdaq Composite dropping 2.15%.

Technology stocks in South Korea were particularly hard-hit. Samsung Electronics saw its stock price fall by over 3%, while SK Hynix experienced a decline of more than 4%, leading the broader market's weakness. Alphabet shares also fell nearly 7% despite positive earnings, due to concerns about a negative shift in free cash flow. Tesla's stock plummeted by over 14%.

Individual investors were net buyers in the KOSPI market, while foreign and institutional investors were net sellers. The KOSDAQ index also followed a similar downward trajectory, currently down 2.86% at 767.09.