Amid a mix of Middle East geopolitical risks and expectations for Korean corporations' earnings, the KOSPI rose 1.3% on the 6th to close higher. Institutional buying and optimism for Samsung Electronics ahead of its preliminary earnings release on the 7th were seen as lifting the index.
The KOSPI closed the day at 5,450.33, up 1.36% (73.03 points) from the previous trading day. Starting at 5,423.35, up 0.86% (46.05 points) from the previous trading day, the KOSPI widened its intraday gains.
The main board was led by institutional buying. Individuals posted a net sell of 1 trillion won and foreigners more than 150 billion won, while institutions alone bought more than 800 billion won. Among institutions, however, brokerages net bought more than 750 billion won. Transactions in exchange-traded funds (ETFs) by individuals are reflected in brokerage flows.
Lee Kyung-min, a researcher at Daishin Securities, analyzed, "In a situation where Middle East geopolitical risks and earnings expectations are mixed, a sector-rotational market emerged."
With uncertainty over a U.S.-Iran war lingering, market caution remains. U.S. President Donald Trump postponed the deadline for talks with Iran, originally set for today, to the 7th (local time). In Korea time, it is expected to be 9 a.m. on the 8th.
President Trump kept up tough rhetoric, saying that if Iran does not meet demands such as opening the Strait of Hormuz by the 7th, the United States would deliver massive strikes on infrastructure. Adding to that, Iran's Islamic Revolutionary Guard Corps claimed there would be no normalization of the Strait of Hormuz, deepening market caution.
The researcher analyzed, "Volatility stemming from Middle East geopolitical risks continues," adding, "Repeated hard-line remarks and shifting messages from President Trump leave uncertainty in the market."
However, as earnings season begins, expectations for results remained intact. In particular, Samsung Electronics, which is set to release preliminary results on the 7th, rose 3.7% to close higher, regaining the "190,000 won electronics" level.
Kang Jin-hyuk, a researcher at Shinhan Investment & Securities, said, "Despite discount-rate pressure from war, attention should be paid to whether fundamentals hold."
With views diverging over the Iran situation, war and truce-themed stocks were mixed. On the back of energy supply chain issues, secondary battery stocks such as LG Energy Solution and Samsung SDI were strong. Energy names including S-Oil, SK Innovation, and SK Gas also closed higher.
By contrast, defense stocks, where profit-taking emerged, were weak. LIG Nex1 and Hanwha Systems ended lower.
The researcher explained, "With gains in international oil prices appearing limited, the market has not fully priced in the worst-case scenarios of all-out war or supply disruptions."
The KOSDAQ fell 1.54% (16.38 points) to close at 1,047.37. The KOSDAQ started the session at 1,068.33, up 4.58 points (0.43%), and turned lower in the morning.
In the KOSDAQ market, individuals net bought 426.5 billion won, while foreigners and institutions net sold 65.7 billion won and 371.1 billion won, respectively.
The KOSDAQ market turned lower intraday on geopolitical uncertainty and weakness centered on bio stocks. EcoPro was strong as ESS momentum came into focus and upbeat outlooks for electric vehicle sales emerged. EcoPro BM rose more than 3% on the day to become the top KOSDAQ stock by market capitalization.