KOSPI Closes Up 1.59% at 5,642 on Institutional Buying of 2 Trillion Won...KOSDAQ Ends at 1,159.55 [fn Market Close]

[The Financial News] The Korea Composite Stock Price Index (KOSPI) closed slightly higher at the 5,642 level, supported by institutional buying. Analysts attributed the gains in part to growing expectations for an early end to the Middle East crisis.
On the 25th, the KOSPI finished at 5,642.21, up 88.29 points, or 1.59%, from the previous trading day. It opened 2.28% higher at 5,680.33 and climbed intraday to as high as 5,740.97, but gave back part of its gains in the afternoon session.
In the Stock Market Division of the Korea Exchange, institutional investors were the sole net buyers, purchasing a net 2.3212 trillion won. In contrast, retail investors and foreigners were net sellers of 1.3349 trillion won and 1.293 trillion won, respectively.
Most industry sectors ended higher. Securities rose 6.85%, medical and precision instruments gained 5.35%, construction advanced 3.60%, metals added 3.52%, paper and wood climbed 3.42%, insurance increased 3.12%, and financials were up 2.97%. On the other hand, electricity and gas slipped 0.51%, and non-metallic minerals edged down 0.12%.
Among large-cap stocks by market capitalization, most names advanced, including Samsung Electronics (0.05%), SK hynix (1.01%), Hyundai Motor Company (1.83%), SK Square (1.85%), Samsung Biologics (2.26%), Hanwha Aerospace (4.27%), and Doosan Enerbility (2.40%).
Recent comments by United States of America (USA) President Donald Trump calling on the Islamic Republic of Iran to agree to a ceasefire helped improve investor sentiment. Brokerage analysts compared the current Middle East crisis to the earlier "tariff war," and suggested that tensions could ease in the near term.
Eun Taek Lee, a researcher at KB Securities, stated, "President Trump's recent response to the Middle East crisis follows exactly the same pattern as during the 'tariff war' episodes in 2019 and last year," adding, "On the assumption that his current negotiation tactics are similar to those used in the tariff negotiations, the likelihood of talks with the Islamic Republic of Iran is high. The longer the crisis drags on, the greater the burden on the Iranian economy and its people, as well as on Trump and the Republican Party (GOP)."
The KOSDAQ closed at 1,159.55, up 38.11 points, or 3.40%, from the previous session. It opened 1.06% higher at 1,133.31 compared with the prior day and extended its gains throughout the session.
On the KOSDAQ, foreign investors and institutions bought a net 373.5 billion won and 12.4 billion won worth of shares, respectively. Retail investors sold a net 381.5 billion won.

yimsh0214@fnnews.com Reporter Im Sang-hyuk Reporter