On the 3rd, as expectations grew for the reopening of the Strait of Hormuz, the KOSPI and KOSDAQ indexes closed higher together. In the KOSPI market, foreigners turned net buyers for the first time in 12 trading days, leading the index higher.
The KOSPI index closed at 5,377.30, up 143.25 (2.74%) from the previous trading day. After opening higher at 5,375.50, the index nearly lost the 5,300 level amid individual selling during the session, but it extended gains as foreign net buying flowed in.
Foreigners were net buyers of 808.5 billion won in the KOSPI market, turning net buyers for the first time in 12 trading days. They also bought a net 525.2 billion won in KOSPI200 futures. Institutions likewise were net buyers of 716.9 billion won. Among institutional investors, brokerages bought a net 274.3 billion won and investment trusts 226.3 billion won, while the national pension funds sold a net 55.7 billion won.
Individuals, who had been net buyers of around 80 billion won early in the session, turned to selling and ended the day as net sellers of 2.0879 trillion won.
The recovery in risk appetite is seen as stemming from expectations for the reopening of the Strait of Hormuz. Overnight, reports said Iran is drafting a protocol to monitor transit through the strait.
Jeong Hae-chang, an analyst at Daishin Securities, said, "Expectations for reopening the Strait of Hormuz are a factor that stirs preference for risk assets," adding, "as the perception takes hold that the Iran situation has passed its peak, the market is confirming a bottom and rebounding."
As risk appetite recovered, semiconductor stocks were strong. SK hynix surged 5%, while Samsung Electronics rose 4% and DB HiTek gained 8%.
HD Hyundai affiliates also jumped on news of orders. HD Hyundai Heavy Industries, which reported orders for eight propane and butane carriers (P/C vessels), a type of liquefied petroleum gas (LPG) carrier, climbed 9%, while HD Korea Shipbuilding & Offshore Engineering, which reported a 1.2 trillion won shipbuilding contract, also jumped 6% at the close.
The KOSDAQ index closed at 1,063.75, up 7.41 points (0.7%) from the previous day. After a higher open, the KOSDAQ index at one point turned lower on selling by foreigners and institutions, but rebounded as individuals were net buyers of 406.1 billion won.
In the KOSDAQ market, Alteogen jumped more than 3%, reclaiming the top spot by market capitalization on KOSDAQ. Sam Chun Dang Pharm, which had plunged about 48% over the past three trading days, rose 6% at the close as bargain hunters moved in.