Buoyed by expectations of the Hormuz Strait reopening, the KOSPI started up 3% on the 3rd but has pared gains on individual investors' selling. KOSDAQ has turned lower.

The KOSPI is trading at 5,323.67, up 89.62 points (1.71%) from the previous session. It briefly eyed the 5,400 level early in the session, but gains narrowed on individual selling.

On the morning of the 3rd, market indicators including KOSPI and KOSDAQ are displayed on an electronic board in the dealing room at Hana Bank in Jung-gu, Seoul. KOSPI opens at 5,375.5, up 141.45 points (2.70%) from the previous session./Courtesy of News1

Early in the session, investor sentiment improved on reports that Iran is drafting a protocol to monitor passage through the Hormuz Strait. Iran Vice Minister of Foreign Affairs Kazem Gharibabadi said it is "not to restrict ship traffic but to ensure safe passage and improve related services."

However, individuals who were net buyers early in the session shifted to 823.9 billion won in net selling, trimming gains. Foreign investors and institutions are net buying 77.1 billion won and 545.7 billion won, respectively, helping lift the index. Specifically, exchange-traded fund (ETF) funds show a 152.9 billion won buy balance, investment trusts 129.8 billion won, and pension funds 89.8 billion won.

Most large-cap stocks by market value are rising. SK hynix is surging 4%, reclaiming "870,000-nix," while Samsung Electronics is also jumping 2% to reclaim 180,000 won. Samsung Electro-Mechanics is strong as expectations of price hikes for flip-chip ball grid array (FC-BGA) and multilayer ceramic capacitors (MLCC) are being priced in.

HD Hyundai affiliates are strong on news of additional orders. HD Hyundai Heavy Industries, which reportedly won orders for eight propane and butane carriers (P/C ships), is soaring 8%. HD Korea Shipbuilding & Offshore Engineering is also jumping 6% on news of a 1.2 trillion won shipbuilding contract.

As international oil prices surge, funds are also flowing into renewable energy stocks. OCI Holdings (8.78%), Hanwha Solutions (12.22%), and HD Hyundai Energy Solutions (27.18%) are strong. International oil is around $111 in transaction.

At the same time, the KOSDAQ is trading at 1,055.66, down 0.68 points (0.06%) from the previous session. Individuals are net buying 289.3 billion won, but foreigners and institutions are net selling 181.4 billion won and 104.9 billion won, respectively.

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