KOSPI catches its breath... surges 7% and nears 5,900 level [Financial News Afternoon Market Report]

As the United States of America (USA) and the Islamic Republic of Iran entered a two-week ceasefire, the Korea Composite Stock Price Index (KOSPI) is soaring more than 7%. Samsung Electronics, which reported record-strong earnings the previous day, and SK hynix, which is set to announce its results, are shooting up like a rocket and driving the index higher. As of 1:30 p.m. on the 8th, the KOSPI was trading at 5,882.89, up 388.11 points (7.06%) from the previous session. The index opened at 5,804.70, up 5.64% from the previous close, and has since extended its gains, moving within reach of the 5,900 level.
In the main board market, individual investors locked in profits of 4.3919 trillion won in just one day, while foreign investors and institutions bought a net 1.8878 trillion won and 2.3622 trillion won, respectively.
By sector, construction jumped 18.85%, securities rose 10.37%, and electrical and electronics gained 8.9%. Paper and wood was the only sector to decline, slipping 2.71%.
Among large-cap stocks by market capitalization, Samsung Electronics climbed 8.52%, SK hynix surged 14.41%, Hyundai Motor Company advanced 7.18%, and SK Square leaped 16.63%. In contrast, LG Energy Solution fell 0.98%, and Hanwha Aerospace dropped 4.16%.
At the same time, the Korea Securities Dealers Automated Quotations (KOSDAQ) was trading at 1,080.49, up 43.76 points (4.22%) from the previous session. The index opened at 1,084.57, up 4.61% from the prior close, and has been fluctuating around the 1,080 level.
In the KOSDAQ Market, individuals recorded net selling of 461.7 billion won, while foreign investors and institutions showed net buying of 184.8 billion won and 296.6 billion won, respectively.
With the United States and Iran effectively agreeing to a two-week ceasefire, financial markets have stabilized, and the domestic stock market has followed with a strong rebound. On the same day, May delivery futures for West Texas Intermediate crude oil (WTI) plunged 15% from the previous session, falling below 100 dollars per barrel. The yield on the 10-year U.S. Treasury note also retreated to the 4.2% range, while the won–dollar exchange rate dropped to 1,477 won.
In both the KOSPI and KOSDAQ, a "maesu sidecar" (a buy-side trading curb) was triggered shortly after the opening, at 6 minutes and 13 minutes into trading, respectively. This marks the seventh activation of a buy-side sidecar in the KOSPI market this year and the sixth in the KOSDAQ market.
Lee Jaewon, a researcher at Yuanta Securities Korea, said, "Net buying by foreign investors and institutions is concentrated in large-cap and electrical and electronics stocks." He added, "Samsung Electronics saw its gains capped the previous day despite record-breaking earnings due to war jitters, but it has surged today. SK hynix has also jumped more than 10%, reflecting heightened expectations for its upcoming earnings release."

nodelay@fnnews.com Park Ji-yeon Reporter