Samsung Electronics delivered an earnings surprise in the first quarter, beating market expectations, but with the chances of a cease-fire deal among the United States, Israel, and Iran seen as low, the KOSPI index did not rise much on the 7th.
The KOSPI index closed at 5,494.78, up 44.45 points, or 0.82%, from the previous trading day. The KOSPI, which opened right after Samsung Electronics released its record results, started up 2% at 5,552.19, but intraday gains narrowed as profit-taking emerged. It turned lower in the morning and fluctuated, then turned higher again before the close as foreign buying flowed in.
On the supply-demand side, a notable "hand-off" among investor groups stood out. Individuals lifted the index early with a net purchase of about 400 billion won but switched to net selling around 9:30 a.m. and ended the day with a total net sale of 342.6 billion won. Institutions also were net sellers of 414.1 billion won.
Foreign investors, by contrast, maintained net selling for most of the session but turned net buyers before the close and finished the transaction with a net purchase of 406.9 billion won.
Samsung Electronics said it posted first-quarter revenue of 133 trillion won and operating profit of 57.2 trillion won, releasing preliminary results. Year over year, revenue rose 68.06% and operating profit jumped 755.01%.
Although Samsung Electronics reported record results, it appears Middle East geopolitical risks had a bigger impact on the market. With the timing of the attack warned by U.S. President Donald Trump just a day away, Iran is rejecting the proposed cease-fire agreement and demanding a complete end to the war.
Trump said, "If an agreement is not reached by the negotiation deadline, we will completely destroy all bridges and power plants within four hours." Tensions between the two sides are rising again.
On the prediction market platform Polymarket, the probability that the United States and Iran will agree to a cease-fire by the 7th is reflected at 2%. As of the 15th, the probability is 15%, and as of the 30th it is 29%, indicating sentiment that the chance of ending the war in April is not high.
Lee Hae-chang, a Daishin Securities researcher, said, "Although Samsung Electronics released strong results, the market's focus has shifted to geopolitical risks due to the escalating Iran situation, diluting the positive catalyst."
With the possibility of a prolonged war in focus, defense stocks were strong. Hanwha Aerospace jumped 6%, and Hanwha Systems (3.21%) and LIG Nex1 (2.1%) also gained.
Samsung Electronics surged 5% in premarket trading, reclaiming "200,000 won," but pared gains intraday to close up 1.76%. SK hynix also rose 3.39% to close at 916,000 won.
The KOSDAQ index closed at 1,036.73 won, down 10.64 won, or 1.02%, from the previous trading day. KOSDAQ opened higher at 1,060.25 but turned lower intraday as individuals and institutions sold 32 billion won and 125.2 billion won, respectively.