Affected by expectations of US-Iran negotiations, the Korea Composite Stock Price Index reclaims 6,000 points

South Korea’s Composite Stock Price Index (KOSPI) rebroke the 6,000-point mark during the trading session on the 14th, reflecting market expectations of potential additional negotiations between the United States and Iran.

By 10:58 a.m. that day, the KOSPI closed at 5,982.32 points, up 173.70 points (2.99%) from the previous trading day. The index opened at 5,960.00 points, rising 151.38 points (2.61%), reaching as high as 6,003.80 points, once again breaking through the 6,000-point threshold, before the gains narrowed later. Recently, the market has been sensitive to reactions regarding Middle East tensions, international oil prices, and global risk asset sentiment. Analysts believe that even if a ceasefire negotiation ultimately fails, dialogue has not been completely interrupted, which supports investor confidence.

From a supply and demand perspective, foreign investors and institutions led the index’s rise. On the stock exchange, foreign investors net bought 4.413 trillion won, institutions net bought 5.852 trillion won, while individual investors net sold 11.12k trillion won. Foreign investors also showed a net buy of 8.585 trillion won in the KOSPI200 futures market. In the early trading hours, foreign investors and institutions showed net selling, but during the session, they turned to net buying. This is interpreted as the market reflecting more expectations of negotiations and the strength of the U.S. stock market rather than short-term negative factors.

Last night, the U.S. stock market also preemptively reflected these same factors. On the 13th (Eastern Time) in New York Stock Exchange, the Dow Jones Industrial Average rose 0.63%, closing at 48,218.25 points; the S&P 500 increased 1.02%, closing at 6,886.24 points; the Nasdaq Composite rose 1.23%, closing at 23,183.74 points. News of the breakdown of the U.S.-Iran ceasefire initially heightened risk aversion, but subsequent reports of behind-the-scenes contacts and comments from U.S. President Donald Trump reversed the market sentiment. Investors are now more optimistic about the possibility of restarting negotiations rather than the risk of full-scale conflict.

In the Korean stock market, major technology and cyclical stocks saw significant gains. Samsung Electronics rose 3.73%, closing at 208.5k won; SK Hynix increased 7.02%, closing at 1.11M won. Besides the improved investor sentiment driven by the U.S., SK Hynix also gained momentum due to market expectations of significant earnings improvement by the end of this month. Additionally, Hyundai Motor (3.87%), LG Energy Solution (0.19%), and SK Square (7.93%) rose, while Hanwha Aerospace (-1.31%) and KB Financial (-0.19%) declined. By industry, all sectors rose except for Food, Beverage, and Tobacco (-0.23%), with securities (5.99%), electrical electronics (4.31%), and electrical gas (4.17%) showing relatively larger gains.

The KOSDAQ index also rose along with the recovery in risk appetite. At the same time, the KOSDAQ closed at 1,124.25 points, up 24.41 points (2.22%) from the previous day. The index opened at 1,120.61 points, up 20.77 points (1.89%), continuing its upward momentum. In the KOSDAQ market, individual investors net sold 79.2 billion won, while foreign investors and institutions net bought 41.3 billion won and 20.7 billion won, respectively. In terms of individual stocks, EcoPro (1.67%), EcoPro BM (1.26%), and Alteogen (1.84%) rose, while Samchun Pharma (-0.76%) and Lino Industrial (-1.68%) declined. The short-term direction of the Korean stock market will depend on whether the expectations related to Middle East negotiations can translate into actual diplomatic progress and how long foreign investors’ buying momentum can be sustained.