KOSPI Index Holds Above 5,800 Despite Collapse of US–Iran Talks, as Retail Investors Buy Alone [FN Closing Market Report]

Despite news that peace talks between the United States of America (USA) and Iran have collapsed, the Korea Composite Stock Price Index (KOSPI Index) managed to close above the 5,800 level, supported by bargain hunting from retail investors. According to the Korea Exchange (KRX) on the 13th, the KOSPI Index ended the session at 5,808.62, down 50.25 points, or 0.86%, from the previous trading day. The index opened at 5,737.28, down 2.08% from the previous close. It briefly fell to the 5,730 range early in the session, but later pared losses and recovered the 5,800 level.
In the main board market, individual investors were the only net buyers, purchasing a net 750 billion won worth of shares. Foreign investors recorded net sales of 456.4 billion won, while institutions also showed net selling of 701.6 billion won.
By sector, paper and wood gained 4.19%, metals rose 1.34%, and real estate added 1.08%. In contrast, electricity and gas fell 2.58%, distribution declined 2.55%, and transportation and warehousing lost 2.40%.
Among large-cap stocks by market capitalization, Samsung Electronics Co., Ltd. dropped 2.43% by the close. Hyundai Motor Company slipped 2.25%, and LG Energy Solution also ended weaker, down 2.55%. On the other hand, SK hynix Inc. rose 1.27%, while Hanwha Aerospace Co., Ltd. gained 1.53% and SK Square Co., Ltd. advanced 2.11%.
Concerns grew that volatility in the domestic stock market would widen again after peace talks between the USA and Iran broke down. However, the KOSPI Index managed to trim earlier losses thanks to renewed bargain buying by individual investors. Geopolitical risks resurfaced after Donald Trump, the president of the USA, mentioned the possibility of blocking the Strait of Hormuz. International oil prices surged, with West Texas Intermediate (WTI) and Brent Crude Oil both climbing above 100 dollars per barrel.
Lee Sang-yeon, a researcher at Shinyoung Securities Co., Ltd., said, "The domestic stock market is expected to show a short-term weak trend this week, reflecting disappointment over the suspension of talks between the USA and Iran." He added, "However, given that around six weeks have passed since geopolitical risks began to dominate investor sentiment, it is important to watch the possibility that the market's focus will gradually shift toward corporate fundamentals."
On the same day, the Korea Securities Dealers Automated Quotations (KOSDAQ) closed at 1,099.84, up 6.21 points, or 0.57%, from the previous session. The index opened at 1,076.85, down 16.78 points, or 1.53%, but later reversed course during the session and finished higher.
In the KOSDAQ market, individual investors alone bought a net 264 billion won worth of shares, while foreign investors and institutions posted net sales of 154.8 billion won and 93.2 billion won, respectively.

nodelay@fnnews.com Park Ji-yeon Reporter