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Kospi ends nearly flat to hold 5,500-point line as defense shares surge

Published: 06 Mar. 2026, 18:42 Updated: 06 Mar. 2026, 18:49

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 5,584.87 on March 6, up 0.97 points, or 0.02 percent from the previous trading session. [YONHAP]

Shares pared earlier losses to close nearly unchanged Friday, as investor appetite for automakers and defense companies grew amid the ongoing Middle East crisis. The won weakened against the dollar.

After opening 1.66 percent lower, the benchmark Kospi turned positive in afternoon trading to close at 5,584.87, up 0.02 percent, or 0.97 points.

The index has suffered an extreme rout this week in the wake of the Middle East conflict, tumbling 7.24 percent and 12.06 percent on Tuesday and Wednesday, respectively, before soaring 9.63 percent on Thursday.

Trade volume was heavy at 1.2 billion shares worth 31.2 trillion won ($21.2 billion), with gainers beating decliners 524 to 360.

Individual investors purchased 2.9 trillion won worth of stocks, while foreigners and institutions sold a net 1.1 trillion won and 1.9 trillion won, respectively.

Analysts noted that the financial market has been largely upset by geopolitical developments in the Middle East, but still has some strong points that pushed up the index.

The Iranian national flag flies during a special session of an IAEA Board of Governors meeting in Vienna on March 2. [AP/YONHAP]

“It seems that the Kospi experienced a readjustment following the previous session's 10 percent surge,” said Lee Kyoung-min, an analyst from Daishin Securities. “The market has reflected massive volatility throughout this week, but bargain hunters supported the 5,500-point line.”

Auto, defense, and battery shares closed bullish.

Top carmaker Hyundai Motor rose 0.91 percent to 553,000 won, and its auto parts affiliate Hyundai Mobis gained 2.78 percent to 444,000 won.

Defense giant Hanwha Aerospace soared 7.24 percent to 1.48 million won, and LIG Nex1 surged 9.31 percent to 834,000 won.

The Samsung Electronics logo hangs on the wall of its headquarter in Seocho District, western Seoul, on Jan. 29. [YONHAP]

Leading battery maker LG Energy Solution increased 1.62 percent to 377,500 won, and Posco Future M climbed 3.61 percent to 215,500 won.

Major game maker NCsoft rose 4.89 percent to 214,500 won, and Netmarble advanced 11.34 percent to 54,000 won.

However, chip giant Samsung Electronics fell 1.77 percent to 188,200 won, and its rival SK hynix dropped 1.82 percent to 924,000 won.

The won weakened 8.3 won from the previous session to trade at 1,476.4 against the greenback at 3:30 p.m.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys added 3.8 basis points to 3.23 percent, and the return on the benchmark five-year government bonds gained 3 basis points to 3.47 percent.

Yonhap