KOSPI Quickly Recovers 5,800...Samsung at 210,000 Won and SK hynix at 1 Million Won Are Back [US–Iran Two-Week Truce]

With the war in the Middle East entering a truce phase, the domestic stock market reclaimed the 5,800 level. Massive, simultaneous buying by foreign investors and institutions drove a sharp rebound, triggering temporary buy-side program trading halts (sidecars) on both the KOSPI and KOSDAQ markets.
According to the Korea Exchange (KRX) on the 8th, the KOSPI closed at 5,872.34, up 377.56 points (6.87%) from the previous day. It was the first time in 15 trading days, since the 18th of last month, that the index finished above the 5,800 mark.
The index opened at 5,804.70, up 5.64% from the previous close, and extended its gains to reach an intraday high of 5,919.60 in the afternoon. The KOSDAQ also climbed 53.12 points (5.12%) from the prior session to end at 1,089.85.
As the financial markets stabilized following the agreement between the United States and Iran on a two-week ceasefire, the domestic equity market continued its steep rebound.
US President Donald Trump wrote on Truth Social, "On the condition that Iran agrees to the full, immediate and safe opening of the Strait of Hormuz, I agree to suspend bombing and attacks on Iran for two weeks." After news of the truce broke, May delivery futures for West Texas Intermediate crude oil (WTI) plunged 15% from the previous session, falling below 100 dollars. The yield on the 10-year U.S. Treasury note also dropped into the 4.2% range, while in the Seoul foreign exchange market the won–dollar exchange rate fell 33.6 won from the previous day to 1,470.6 won as of 3:30 p.m.
Foreign investors and institutions lifted the index by net buying 2.4358 trillion won and 2.7145 trillion won worth of shares, respectively, in the KOSPI market. In contrast, retail investors sold a net 5.4165 trillion won in a single day, the largest net sell-off on record.
Strong buying focused on Samsung Electronics, which recently posted record earnings, and SK hynix, which is set to announce its results at the end of this month. Samsung Electronics jumped 7.12% from the previous session to close at 210,500 won. SK hynix soared 12.77% to finish at 1,033,000 won.
Samsung Electronics has reported a preliminary operating profit of 57 trillion won for the first quarter, up 755% from a year earlier. Analysts in the securities industry expect SK hynix’s first-quarter operating profit to exceed 35 trillion won, which would be an all-time high.
Buy-side sidecars were activated on both the KOSPI and KOSDAQ markets. The buy-side sidecar was triggered on the KOSPI at 9:06 a.m., and on the KOSDAQ at 9:13 a.m.
It was the first time in five trading days, since the 1st of this month, that buy-side sidecars were triggered on both markets on the same day. This marked the 13th sidecar activation on the KOSPI so far this year, six of which have been buy-side. On the KOSDAQ, a total of nine sidecars have been triggered this year, and this was also the sixth buy-side activation.
Kang Jinhyuk, a researcher at Shinhan Securities, noted, "In a market where bad news is already priced in and investors are highly sensitive to good news, the agreement between the US and Iran on a two-week truce, followed by reports of the opening of the Strait of Hormuz, unleashed pent-up buying demand." He added, "In particular, semiconductor stocks rallied, led by Samsung Electronics, which had closed weaker the previous day despite strong earnings due to caution over the Middle East situation."
Given that war-related uncertainty has weighed on the stock market for more than a month, some analysts say the latest truce agreement could help the domestic market overcome correction pressures, supported by an earnings-driven rally. A source in the financial investment industry commented, "After the outbreak of the Middle East war, upward pressure on oil prices, the dollar and interest rates all emerged at the same time. Semiconductors, in particular, suffered a steep correction because they are highly sensitive to foreign investor flows," and added, "While Samsung Electronics and SK hynix have maintained top-tier profitability within the sector, their share prices have not recovered to the same extent. As the market shifts from concerns over Middle East risk to a phase of reassessing earnings, the relative appeal of semiconductor stocks is bound to increase."
nodelay@fnnews.com Park Ji-yeon Reporter