On the 25th, Korea's stock market closed higher on expectations for an end to the war between the United States and Iran. However, the KOSPI, which had risen nearly 3% early in the session on net buying by foreigners, pared some gains in the afternoon as foreigners turned to net sellers and closed around the 5,640 level.
By contrast, the KOSDAQ market sustained foreign-driven momentum through the close and ended up 3% around the 1,150 level. Sam Chun Dang Pharm, which took the No. 1 spot in KOSDAQ market capitalization, soared more than 19% in a single day and became a "Hwangje-ju (stock at 1 million won)."
The KOSPI index closed at 5,642.21, up 88.29 (1.59%) from the previous trading day. On hopes for an end to the war in Iran, it topped the 5,700 level early in the session but gave back some gains in the afternoon.
The index was lifted as funds from financial investment institutions among institutions went on a 2.3335 trillion won buying spree. Long-term investors such as the National Pension Service and investment trusts were also net buyers of 14.7 billion won and 36.8 billion won, respectively.
However, foreigners, who had been net buyers of nearly 300 billion won in the morning, switched to net sellers at 12:13 p.m. They sold 1.293 trillion won just today. Still, foreigners were net buyers of 1.6016 trillion won of June KOSPI200 futures. Individuals were net sellers from early in the session, offloading a total of 1.3349 trillion won.
Jung Hae-chang, a researcher at Daishin Securities, said, "The market opened higher on news that the Trump administration delivered a cease-fire proposal to Iran," but noted, "Despite conciliatory remarks, there were actions such as deploying troops to Iran, leaving uncertainty in place." He added, "This appears to have narrowed intraday gains in the domestic market."
SK hynix, which was reported to be preparing a listing of depository receipts (ADR) on the U.S. stock market, jumped 4% early but eased into the close to finish up 0.91%. Samsung Electronics turned lower and lost the 190,000-won level.
Securities stocks were strong on expectations they would benefit from market volatility. Mirae Asset Securities surged more than 10%, while Korea Investment Holdings (4.5%), NH Investment & Securities (4.1%), and Kiwoom Securities (8%) also advanced.
Defense stocks were also strong. LIG Nex1 jumped more than 14%, while Korea Aerospace Industries (KAI) (4.93%), Hyundai Rotem (7.2%), Hanwha Systems (7.31%), and Hanwha Aerospace (4.87%) also gained.
The KOSDAQ index closed at 1,159.55, up 38.11 (3.4%) from the previous trading day. Foreigners and institutions were net buyers of 373.5 billion won and 12.4 billion won, respectively. Individuals alone sold 381.3 billion won.
Investor sentiment flocked to biotech stocks led by Sam Chun Dang Pharm. Sam Chun Dang Pharm (19.12%), Kolon TissueGene (10%), LigaChem Biosciences (4.66%), and Aimed Bio (7%) all closed higher.