KOSPI Jumps to 8,300 as Foreign Investors Return After a Month [fn Morning Market Report]

[Financial News] KOSPI (Korea Composite Stock Price Index) is showing strong gains. The rally appears to have been driven by expectations that the crisis in the Middle East could soon come to an end, prompting foreign investors to post net purchases for the first time in a month.
According to Korea Exchange (KRX) on the 12th, KOSPI was trading at 8,306.03 as of 10:25 a.m., up 542.08 points, or 6.98%, from the previous session. It opened at 6,263.85, up 499.90 points, or 6.44%, from the previous close, and has since extended its gains. The index surged sharply in early trading, briefly triggering a program buy-side circuit breaker.
On the Korea Exchange Main Board Market, foreign investors and institutions were net buyers of 1.0718 trillion won and 977.2 billion won, respectively. Foreign investors have posted net buying in KOSPI for the first time in 25 trading days, since June 6. Retail investors were net sellers of 1.9402 trillion won.
Most large-cap stocks were higher. Samsung Electronics was up 10.54% at 330,500 won. SK hynix also rose 7.81% to 2.265 million won. Other gainers included SK Square (8.63%), Samsung Electro-Mechanics (5.15%), Hyundai Motor Company (5.36%), LG Energy Solution (4.29%), and Samsung Life Insurance (7.81%).
Most sectors also advanced. The biggest gains came in electric and electronics (8.66%), manufacturing (7.69%), machinery and equipment (6.50%), construction (5.75%), IT services (5.61%), and finance (5.55%).
Expectations that the United States and Iran could reach a ceasefire agreement helped drive prices higher. At a White House event on the 11th local time, U.S. President Donald Trump said, "We just made a great deal with Iran about war, and we are only in the final stage of finalizing the document." However, according to foreign media reports, a spokesperson for the Iranian Foreign Ministry said the same day, "Nothing has been finalized yet."
Han Ji-young, a researcher at KIWOOM Securities Co., Ltd., said, "Today’s market is likely to rise on positive factors such as the imminent conclusion of negotiations between the United States and Iran, as well as the overnight strength in U.S. semiconductor stocks." She added, "Even when facing external uncertainty, a strategy of holding leading stocks with solid earnings momentum could remain useful going forward."
At the same time, KOSDAQ (Korea Securities Dealers Automated Quotations) was trading at 1,024.60, up 27.67 points, or 2.78%, from the previous session. It opened at 1,027.05, up 30.12 points, or 3.02%, from the previous close. KOSDAQ has reclaimed the 1,000 level for the first time in five trading days, since the 5th.
On KOSDAQ, institutions and retail investors were net buyers of 61.2 billion won and 44.2 billion won, respectively. Foreign investors, meanwhile, were net sellers of 108.2 billion won.

yimsh0214@fnnews.com Lim Sang-hyuk Reporter