As the possibility of a cease-fire between the United States and Iran emerged, Korea's stock market rose on the 25th. In particular, foreign investors, who had made net sales for four straight sessions due to war uncertainty, returned.
As of 11:41 a.m. that day, the KOSPI index was trading at 5,681.61, up 127.69 (2.3%) from the previous session.
It is seen that investor sentiment improved after news the previous day that the United States and Iran are holding cease-fire talks. According to the New York Times (NYT), the Trump administration delivered a cease-fire proposal to Iran through Pakistan.
In addition, news came that Iran would open part of the Strait of Hormuz to non-hostile nations' ships. After the news, international oil prices fell below $90. According to the New York Mercantile Exchange, West Texas Intermediate (WTI) May futures were trading around $88 per Barrel, down about 4% from the previous transaction day.
However, despite the talks, a variable remains as President Donald Trump has not lowered the level of military pressure, reinforcing military power including heavily armed U.S. Marines near the Strait of Hormuz.
As geopolitical uncertainty eased, foreign investors who had made net sales for four straight sessions returned. Foreign investors made net purchases of 256.3 billion won that day. They were also net buyers of 1.0963 trillion won in KOSPI 200 futures. Kang Jin-hyeok, an analyst at Shinhan Investment & Securities, said, "It's the first simultaneous net buying of KOSPI cash and futures by foreign investors in four days."
Institutions were also net buyers of 1.6252 trillion won. Among them, financial investment, where exchange-traded fund (ETF) flows are tallied, bought a net 1.4169 trillion won, pension funds 101.5 billion won, and investment trusts 35.1 billion won. Individuals alone were net sellers of 1.9946 trillion won.
SK hynix topped 1 million won on news it filed a registration statement with the U.S. Securities and Exchange Commission (SEC) to list depository receipts in the U.S., and Samsung Electronics also rose 1%, nearing the 200,000-won mark.
Securities stocks were also strong as transaction value stood out amid a market rebound. Mirae Asset Securities (5.89%), Korea Investment Holdings (4.5%), and Kiwoom Securities (7%) were strong.
At the same time, the KOSDAQ index was trading at 1,149.72, up 28.28 (2.52%) from the previous session. Foreign investors lifted the KOSDAQ as well with net purchases of 199.1 billion won. Individuals and institutions were net sellers of 165.6 billion won and 20.4 billion won, respectively.
In the KOSDAQ market, Sam Chun Dang Pharm surged more than 13%, eyeing "emperor stock (share price of 1 million won)." Pearl Abyss (26.04%) jumped on news that its new title "Crimson Desert" topped 3 million copies.