The KOSPI index rose 2.11% to close at 8,726.6 points today, recovering the 8,700-point threshold [1].
This rally signals a significant shift in investor sentiment, driven by hopes that the U.S. and Iran will reach a peace agreement. The geopolitical optimism encouraged a massive influx of foreign capital, stabilizing the domestic market and putting downward pressure on the currency exchange rate.
Foreign investors drove the surge with a net purchase of 1.5 trillion won [1]. This marked the third consecutive day of net buying by foreign entities [1]. In contrast, individual investors opted to sell their holdings to realize profits [1].
Currency markets reacted sharply to the positive news. The won-dollar exchange rate dropped from the 1,560 range to the 1,510 range [1].
Heavyweight technology stocks played a pivotal role in the day's gains. SK Hynix shares climbed by more than four percent [1]. This jump pushed the combined market capitalization of 19 listed SK Group companies past 2,000 trillion won [1]. The group now ranks second in total market value, trailing only the Samsung Group [1].
"The KOSPI started up 1.76% and closed today at 8,726.6, up 2.11%," a YTN reporter said [1].
Regarding the investor split, the reporter said, "Foreigners net purchased for the third day, while individuals moved to realize profits and net sold" [1].
On the impact of the semiconductor rally, the reporter said, "Specifically, SK Hynix rose by more than 4%, and thanks to this, the combined market capitalization of 19 listed SK Group companies exceeded 2,000 trillion won, second only to the Samsung Group" [1].
“The KOSPI index rose 2.11% to close at 8,726.6 points today.”
The recovery of the KOSPI to the 8,700 level reflects the high sensitivity of the South Korean market to geopolitical stability in the Middle East. By reducing the risk premium associated with U.S.-Iran tensions, foreign investors have returned to high-beta tech stocks like SK Hynix. The simultaneous drop in the won-dollar exchange rate suggests a broader return of confidence in Korean assets, though the profit-taking by individual investors indicates a cautious outlook on whether these gains are sustainable.
