[Edaily Reporter Shin Ha-yeon] As the U.S. and Iran reached a ceasefire agreement, the KOSPI closed up more than 5%, regaining the 8,500 level. Buying by foreign and institutional investors drove the index higher.
According to MP Doctor on the 15th, the KOSPI closed at 8,545.98, up 422.36 points (5.20%) from the previous trading day. This marks the first time the KOSPI has closed above the 8,500 level in seven trading days, since the 4th (closing price of 8,639.41). The index opened at 8,526.12, up 4.95% from the previous session, and rose as high as 8,603.48 during the session, briefly touching the 8,600 mark.
At 9:06 a.m., the 14th buy-side sidecar (temporary suspension of program sell orders) of the year was triggered. The KOSPI sidecar is activated when the KOSPI 200 futures price rises by more than 5% from the benchmark price and remains at that level for over one minute.
In terms of market participants, foreign investors and institutions drove the index higher with net purchases of 1.0118 trillion won and 545.5 billion won, respectively, on the stock market. Retail investors were the only group to show a net selling position of 1.4943 trillion won as they moved to lock in profits. Program trading showed a net buying position of 412.2 billion won, combining both arbitrage and non-arbitrage trades.
As a result, foreign investors broke their record-long streak of net selling—which had lasted 24 trading days since the 7th of last month—and recorded net buying for the second consecutive trading day, following the previous session.
Lee Jae-won, an analyst at Yuanta Securities, noted, “Foreign investors drove the market higher with massive net buying for two consecutive trading days,” adding, “The sectors seeing net buying were, as expected, large-cap stocks and semiconductors, which had previously seen reduced holdings.” He continued, “A combination of factors—the conclusion of the SpaceX supply-demand shift event, the easing of geopolitical tensions, and reduced volatility in the won-dollar exchange rate—collectively prompted foreign investors to return.”
He continued, “Concerns over interest rate hikes stemming from rising oil prices and economic indicators (employment, inflation)—which acted as downward pressure on the market last week—could be resolved by May if the current situation is resolved smoothly,” noting, “While we need to confirm whether foreign investors will continue to return, expectations for the second-quarter earnings season, set to begin with Samsung Electronics’ preliminary results in early July, remain valid.”
Most sectors closed higher. Retail and electricity & gas closed up around 8%, followed by insurance, transportation & warehousing, electrical & electronics, manufacturing, transportation equipment & parts, metals, finance, machinery & equipment, chemicals, real estate, paper & wood, pharmaceuticals, non-metals, and IT services—with most sectors showing strength. Sectors that closed lower were limited to construction, textiles & apparel, and entertainment & culture.
Among the top market cap stocks, #Samsung Electronics closed at 337,000 won, up 14,500 won (4.50%) from the previous trading day. #SK Hynix closed at 2,288,000 won, up 138,000 won (6.42%).
In addition, #SK Square (4.05%), #Samsung Electro-Mechanics (16.63%), #Hyundai Motor (6.59%), #LG Energy Solution (5.14%), #Samsung Life Insurance (9.73%), #Samsung C&T (14.58%), #HD Hyundai Heavy Industries (9.85%), #Doosan Enerbility (7.20%), and #Samsung Biologics (2.86%) all closed higher.
KOSPI trading volume totaled 510.25 million shares, with a trading value of 38.5577 trillion won. Including three stocks that hit the daily price limit, 676 stocks rose, while 207 fell. Thirty-five stocks traded flat, and there were no stocks that hit the daily price limit down.
This is interpreted as being driven by news of a ceasefire between the U.S. and Iran. U.S. President Donald Trump officially announced the conclusion of peace negotiations with Iran on the 14th (local time). Through his social media platform, Truth Social, he stated, “The agreement with Iran is now complete,” adding, “I hereby fully authorize the resumption of free passage through the Strait of Hormuz and, at the same time, authorize the immediate lifting of the U.S. Navy’s naval blockade.”
The Iranian side also confirmed that the draft memorandum of understanding for the ceasefire negotiations has been finalized and that the official signing ceremony is scheduled to take place in Switzerland on the 19th. This marks the conclusion of the war, which began on February 28, after 106 days.
At the same time, the KOSDAQ market closed at 1,034.03, up 4.98 points (0.48%) from the previous trading day. By investor type, retail and institutional investors recorded net purchases of 616.5 billion won and 216.2 billion won, respectively. Foreign investors were the only group to record a net sale of 806.4 billion won.
Among the top market capitalization stocks, #Alteogen (3.56%), #Ecopro BM (9.71%), #Ecopro (7.17%), #Rainbow Robotics (5.77%), #Kolon TissueGene (2.14%), and #HPSP (16.78%) showed gains.
Meanwhile, the three major U.S. stock indices all closed higher last week. On the 13th (local time), the Dow Jones Industrial Average, which tracks blue-chip stocks, closed at 51,202.26, up 353.51 points (0.70%) from the previous session.
The S&P 500 Index, a benchmark for large-cap stocks, closed at 7,431.46, up 37.16 points (0.50%) from the previous session, while the tech-heavy Nasdaq Composite Index closed at 25,888.84, up 79.18 points (0.31%) from the previous session.
