KOSPI jumps 3% to the 5,720 level on institutional and foreign buying amid hopes for a Middle East ceasefire

[The Financial News] The Korea Composite Stock Price Index (KOSPI) climbed to the 5,720 level on strong buying by institutions and foreign investors. The rally is being attributed to growing expectations that tensions in the Middle East will ease, after the United States (US) reportedly proposed a one-month ceasefire to the Islamic Republic of Iran.
As of 10:45 a.m. on the 25th, KOSPI was trading at 5,731.97, up 178.05 points (3.21%) from the previous trading day. The index had opened the session at 5,680.33, a gain of 2.28% from the prior close.
In the Stock Market Division of the Korea Exchange, institutional investors are net buyers of 1.5125 trillion won, while foreign investors are purchasing 299 billion won worth of shares. In contrast, retail investors are net sellers, offloading about 1.8685 trillion won.
Most sectors are trading higher. Medical and precision instruments are up 6.02%, construction 5.55%, securities 5.37%, electrical and electronics 3.89%, finance 3.26%, and manufacturing 3.29%. By contrast, the electricity and gas sector is edging down 0.08%.
Large-cap stocks by market capitalization are broadly stronger. Samsung Electronics is up 3.06%, SK hynix 5.17%, Hyundai Motor Company 3.05%, LG Energy Solution 0.64%, SK Square 3.87%, Samsung Biologics 2.78%, and Hanwha Aerospace 2.32%.
There is growing speculation that the Middle East crisis could be resolved sooner than expected, after the administration of Donald Trump in the United States was reported to have presented the Islamic Republic of Iran with a one-month ceasefire proposal along with a list of demands.
Han Ji-young, a researcher at KIWOOM Securities, explained, "Upside factors, including falling oil prices driven by the one-month ceasefire talks between the US and the Islamic Republic of Iran, are dominating, and this is supporting gains in the domestic stock market." Han added, "From a fundamentals perspective, the medium-term bullish outlook remains valid."
At the same time, KOSDAQ is trading at 1,157.34, up 35.90 points (3.20%) from the previous session. The index opened at 1,133.31, a rise of 1.06% from the prior close.
On KOSDAQ, foreign investors are net buyers of 206.3 billion won. In contrast, retail investors and institutions are net sellers of 177.9 billion won and 19.2 billion won, respectively.

yimsh0214@fnnews.com Reporter Lim Sang-hyuk Reporter